On Monday, Needham analysts maintained a Buy rating on OrthoPediatrics Corp. (NASDAQ:KIDS) shares, with a price target set at $42.00. According to InvestingPro data, the company maintains strong financial health with a current ratio of 7.17, indicating robust liquidity.
Analyst targets range from $28 to $50, with two analysts recently revising earnings estimates upward. The reiteration follows the company's preannouncement of fourth-quarter 2024 revenue, which exceeded market expectations.
OrthoPediatrics reported preliminary revenue of $52.7 million for the quarter, marking a 40% year-over-year increase on a reported basis and an estimated 22% growth organically. This performance aligns with the company's impressive five-year revenue CAGR of 21%. Get deeper insights into OrthoPediatrics' growth metrics and more with a InvestingPro subscription, which includes exclusive access to comprehensive Pro Research Reports. This figure surpasses the consensus estimate of $50.7 million.
For the fourth quarter of 2024, the company's domestic revenue is anticipated to reach $42.9 million, reflecting a significant 52% year-over-year rise. Meanwhile, international revenue is expected to be $9.8 million, a modest 5% increase from the previous year. Looking ahead, OrthoPediatrics has provided guidance for 2025, projecting revenue between $235 million and $242 million, which represents a growth rate of approximately 15-18% year-over-year. This forecast is closely aligned with the consensus estimate of $240 million.
The company also provided guidance on adjusted EBITDA, estimating figures between $15 million and $17 million, which falls below the consensus estimate of $20.1 million. Additionally, management anticipates an annual set deployment budget of $15 million, which is lower than the $20 million guidance provided for 2024.
OrthoPediatrics' management highlighted the untapped potential of its Specialty Bracing business, expressing confidence in the ability to expand the segment in the coming years. While the company operates with a moderate debt level and strong liquidity, InvestingPro analysis suggests the stock is currently fairly valued.
Needham analysts have decided to hold off on updating their financial model until the company releases its full fourth-quarter 2024 results, which are expected to be announced in early March.
In other recent news, OrthoPediatrics Corp. reported a significant revenue increase for 2024, achieving a record net revenue of approximately $204.7 million, a 38% rise from the previous year. This growth is credited to both domestic and international sales. The company projects its 2025 revenue to be in the range of $235 million to $242 million, indicating a 15% to 18% growth. In addition to this, OrthoPediatrics expanded its brace technology with new products and served over 33,000 children, marking a 50% increase from the previous year.
Meanwhile, Procept BioRobotics reported robust revenue growth of 66% in the third quarter, totaling approximately $58.4 million. The company also initiated a public offering of common stock valued at $175 million. Analysts from Morgan Stanley (NYSE:MS) initiated coverage on Procept BioRobotics with an Overweight rating, while Jefferies and BTIG maintain a Hold and Neutral rating respectively.
Piper Sandler expressed optimism for several healthcare companies, including OrthoPediatrics, anticipating positive fiscal year outlooks. These are recent developments that highlight the continued growth and potential of both OrthoPediatrics and Procept BioRobotics in their respective market sectors.
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