LEWISVILLE, Texas - Orthofix (NASDAQ:OFIX) Medical Inc. (NASDAQ:OFIX), a global medical device company focused on spine and orthopedics, reported a net loss in the fourth quarter of 2023, missing analyst expectations. The company posted a loss per share of -$0.59, significantly below the analyst estimate of $0.06. Despite the earnings shortfall, the company's revenue for the quarter was $200.4 million, surpassing the consensus estimate of $195.31 million.
The fourth quarter's net sales represented a 64% increase on a reported basis and a 7% rise on a pro forma constant currency basis compared to the same period last year. Notably, Bone Growth Therapies net sales grew by 15% in the quarter, marking the strongest quarter for this segment in Orthofix's history. Moreover, U.S. Orthopedic net sales saw an 11% increase for the full year 2023.
Massimo Calafiore, President and CEO of Orthofix, expressed satisfaction with the company's strong performance, highlighting accelerated growth, resilience, and increased internal efficiencies. "We are well positioned to deliver profitable growth in 2024," Calafiore stated, emphasizing the company's balanced and complementary product mix.
Despite the positive revenue growth, the company's shares fell by 4.62% following the earnings release, indicating a negative market response, primarily driven by the earnings miss. The company also provided full-year 2024 revenue guidance ranging between $785 million and $795 million, which is slightly below the analyst consensus of $798.6 million.
Orthofix's net loss for the full year 2023 was reported at -$151.4 million, with an adjusted EBITDA of $46.3 million, reflecting a 69% growth over the previous year. The company achieved $32 million in annualized merger-related synergies by the end of 2023.
Looking ahead, Orthofix anticipates non-GAAP adjusted EBITDA for FY2024 to be between $62 million and $67 million, which would represent a significant increase over the full year 2023. The company also expects to exit the fourth quarter of 2024 with positive free cash flow.
Orthofix's comprehensive portfolio of biologics, innovative spinal hardware, bone growth therapies, specialized orthopedic solutions, and a leading surgical navigation system continues to be distributed in over 60 countries worldwide. The company remains headquartered in Lewisville, Texas, with primary offices in Carlsbad, CA, and Verona, Italy.
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