Orthofix International (NASDAQ: OFIX) reported Q4 EPS of $0.44, $0.25 better than the analyst estimate of $0.19. Revenue for the quarter came in at $117.6 million versus the consensus estimate of $113.2 million.

• Fourth quarter net sales of $117.6 million, within 3% of our 2019 results
• US Spine implant sales grew 11% compared to fourth quarter 2019, driven by record M6-C artificial cervical disc performance
• Strong cash flow performance in the quarter, free cash flow of $17.9 million
• FITBONE® intramedullary lengthening and deformity system receives FDA clearance for pediatric indication

“We were very pleased with our performance during the fourth quarter both from a financial and operating perspective. We were able to drive revenue to levels approaching 2019 while continuing to strengthen our organization during the continued disruption from restrictions on elective procedures globally,” said Orthofix President and Chief Executive Officer Jon Serbousek.

“Although early 2021 has seen some significant COVID and winter weather headwinds, looking ahead, we are very excited about the future of Orthofix. We are now moving our transformation into an execution phase, and we look forward to leveraging the new capabilities we built throughout 2020 to drive growth and pursue high value solutions for patients, surgeons, and hospitals around the world. A great example is our recent expanded FDA clearance for the FITBONE® system, making it the only pediatric lengthening nail in the U.S., and an important addition to our pediatric portfolio.”

GUIDANCE:

Orthofix International sees FY2021 EPS of $0.45-$0.55, versus the consensus of $0.99. Orthofix International sees FY2021 revenue of $445-460 million, versus the consensus of $454 million.

COVID-19 Impact and 2021 Outlook

The global Coronavirus Disease 2019 ("COVID-19") pandemic has significantly affected the Company’s customers, communities, employees and business operations. The pandemic has led to the cancellation or deferral of elective surgeries and procedures, restrictions on travel, the implementation of physical distancing measures, and the temporary or permanent closure of businesses. However, the Company remains focused on protecting the health and wellbeing of its employees, partners, patients, and the communities in which it operates while assuring the continuity of its business operations.

At the beginning of the first quarter of 2021, COVID-19 restrictions have increased over December 2020 measures and from January through early February we saw procedural volume declines of approximately 15%. In addition, the weather emergency experienced last week will likely have an additional negative impact on our business for the first quarter. While we expect improvements in March, we still anticipate a modest impact from COVID-19 related restrictions into the second quarter. The third and fourth quarters are expected to show stronger growth when compared to the second half of 2019 as a result of expected rebounds in procedural volumes and case complexity.

Guidance for the quarter ended March 31, 2021 is provided for increased clarity during the continued impact from COVID-19 and recent severe national weather events. However, the Company remains focused on its longer-term results and, assuming current improvements continue, the Company does not expect to provide quarterly guidance prospectively.

For earnings history and earnings-related data on Orthofix International (OFIX) click here.