Orthofix International (OFIX) Stock Forecast & Price Target

Orthofix Medical Inc. demonstrated robust financial performance, highlighted by a 6% constant currency growth in the global orthopedics segment and an 8% revenue growth in U.S. spinal fixation for the quarter. The company experienced strong market share capture, particularly in lateral, MIS lumbar, and spinal procedures, with notable increases of 24%, 18%, and 17%, respectively. Additionally, revenue from spinal implants, biologics, and enabling technology totaled $110.9 million, surpassing expectations and indicating high demand within the orthopedic and spine solutions market.

Orthofix Medical Inc. reported a higher-than-expected GAAP SG&A expense, accounting for 72.0% of revenue, which contrasts with the analyst's expectation of 66.7%, indicating efficiency challenges relative to market growth rates. Additionally, despite an improvement in adjusted EBITDA to $25.1 million from an anticipated $21.0 million, the overall financial performance suggests potential downward revisions in cash flow modeling. The company projects revenue for the year at approximately $820 million, which, when excluding M6 revenue, aligns with management's pro forma guidance of $810 million to $814 million, reflecting uncertainty in achieving long-term financial targets.