Dj Orthopediatrics Corp, Inst Holders, 3Q 2024 (Kids)

For the quarter ended September 2024, OrthoPediatrics (KIDS) reported revenue of $54.57 million, up 36.5% over the same period last year. EPS came in at -$0.18, compared to -$0.13 in the year-ago quarter.

The reported revenue represents a surprise of +1.21% over the Zacks Consensus Estimate of $53.92 million. With the consensus EPS estimate being -$0.12, the EPS surprise was -50.00%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how OrthoPediatrics performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Product sales by category- Trauma and deformity: $37.64 million versus the three-analyst average estimate of $38.91 million. The reported number represents a year-over-year change of +30.7%.
• Product sales by category- Sports medicine/other: $1.30 million compared to the $0.96 million average estimate based on three analysts. The reported number represents a change of +50.4% year over year.
• Product sales by category- Scoliosis: $15.64 million versus $14.06 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +51.7% change.

View all Key Company Metrics for OrthoPediatrics here>>>

Shares of OrthoPediatrics have returned +21.7% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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OrthoPediatrics (KIDS) came out with a quarterly loss of $0.18 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -50%. A quarter ago, it was expected that this maker of orthopedic devices would post a loss of $0.31 per share when it actually produced a loss of $0.23, delivering a surprise of 25.81%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

OrthoPediatrics, which belongs to the Zacks Medical - Instruments industry, posted revenues of $54.57 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.21%. This compares to year-ago revenues of $39.97 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

OrthoPediatrics shares have lost about 8.3% since the beginning of the year versus the S&P 500's gain of 21.2%.

What's Next for OrthoPediatrics?

While OrthoPediatrics has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for OrthoPediatrics: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.27 on $50.4 million in revenues for the coming quarter and -$0.92 on $201.82 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Nevro (NVRO), is yet to report results for the quarter ended September 2024. The results are expected to be released on November 11.

This maker of an electrical implant that treats leg and back pain is expected to post quarterly loss of $0.82 per share in its upcoming report, which represents a year-over-year change of -26.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Nevro's revenues are expected to be $93.07 million, down 10.4% from the year-ago quarter.

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