OrthoPediatrics (KIDS) Misses Q3 EPS by 4c, Revenues Beat; Raises FY18 Revenue Growth Guidance

OrthoPediatrics (NASDAQ: KIDS) reported Q3 EPS of ($0.15), $0.04 worse than the analyst estimate of ($0.11). Revenue for the quarter came in at $15.8 million versus the consensus estimate of $15.13 million.

• Increased total revenue to $15.8 million for third quarter 2018, up 27.8% from $12.4 million in third quarter 2017
• Deployed $2.3 million of consignment sets during the third quarter 2018
• Converted Canada to sales agency model
• Fully launched Pediatric Nailing Platform | FEMUR and announced expanded indications for FIREFLY® Pedicle Screw Navigation Guides, patient-specific, 3D printed guides, in July
• Received FDA 510(k) clearance for 26th surgical system, RESPONSE 4.5/5.0mm System, to treat smaller stature, younger patients with complex scoliosis in October
• Increased revenue growth guidance to a range of 25.0% to 25.5% and investment in consignment sets to $12.0 million for full year 2018

Mark Throdahl, Chief Executive Officer of OrthoPediatrics, stated, “Our strong performance represents another consecutive quarter of record revenues, driven by continued strength across all segments of our business. In the third quarter, we further consolidated our leading position in pediatric orthopedics with particularly strong domestic sales, led by our U.S. scoliosis business and reflecting the initial benefits from increased investment in consigned sets. With the additional $2.3 million of set deployment during the quarter, we continue to address the robust demand for our surgical systems. Furthermore, our demonstrated ability to develop a consistent cadence of innovative products provides further expansion opportunities. We are very pleased with our steady execution that led to another quarter of outperformance and supports our increased guidance for the full year.”

OrthoPediatrics is updating financial guidance for the full year 2018, as follows:

• Revenue growth in a range of 25.0% to 25.5%, up from prior guidance of 23% to 24%.
• Consigned set investments of approximately $12.0 million, up from prior guidance of $11.0 million.

For earnings history and earnings-related data on OrthoPediatrics (KIDS) click here.

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