Wall Street Backs Orthofix Medical Despite Quarterly Loss

A surprising quarterly loss isn’t dimming Wall Street’s enthusiasm for medical device company Orthofix Medical. While the firm recently reported disappointing earnings, five separate brokerages maintain a positive outlook, signaling a belief in the company’s underlying strength.

The market’s reaction to Orthofix’s August earnings report was telling. Despite the negative news, the stock surged over 15% in pre-market trading. This investor confidence appears rooted in a critical detail within the results: a significant revenue beat. The company posted sales of $203.12 million, soundly exceeding analyst projections of $196.89 million. This top-line strength suggests that core demand for its orthopedic and spinal surgical products remains robust.

The quarterly loss of $0.36 per share was a clear miss against expectations for a $0.04 per share profit. However, analysts Read more...