OrthoPediatrics (NASDAQ:KIDS) Issues Quarterly Earnings Results, Misses Estimates By $0.02 EPS

OrthoPediatrics (NASDAQ:KIDS) posted its quarterly earnings results on Tuesday. The company reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.02), FiscalAI reports. The business had revenue of $72.66 million during the quarter, compared to analyst estimates of $68.50 million. OrthoPediatrics had a negative return on equity of 8.10% and a negative net margin of 15.72%.

Here are the key takeaways from OrthoPediatrics’ conference call:

• Record third-quarter revenue rose 19% year over year to $72.7 million, driven by broad-based implant demand, legacy portfolio share gains, strong OPSB growth, and international performance.
• Management raised full-year 2026 revenue guidance to $270 million-$273 million, or 14%-16% growth, while reiterating approximately $25 million of adjusted EBITDA and free-cash-flow breakeven or better for the year.
• The multi-year product “Super Cycle” is gaining traction, with 3P Hip, VerteGlide, TRAXIO, and other launches contributing to growth; additional products including 3P Small, 3P Mini, and PNP Retrograde are expected to support larger opportunities in 2027 and beyond.
• OPSB revenue grew more than 20%, supported by new products, same-store sales, and clinic expansion to more than 60 locations. The company also reported record adjusted EBITDA of $6.9 million and quarterly free cash flow of $1.6 million.
• Near-term profitability and cash flow remain subject to elevated investment in new products and startup clinics, while set deployment is being managed cautiously; management also noted that Q4 could be affected by the absence of prior-year Brazil set sales and potential 7D unit sales.

OrthoPediatrics Price Performance

Shares of OrthoPediatrics stock opened at $30.80 on Thursday. The stock has a market capitalization of $804.19 million, a price-to-earnings ratio of -18.33 and a beta of 0.99. The firm’s 50-day moving average price is $23.13 and its two-hundred day moving average price is $19.47. The company has a current ratio of 4.78, a quick ratio of 2.17 and a debt-to-equity ratio of 0.28. OrthoPediatrics has a 1-year low of $14.42 and a 1-year high of $31.51.

Insider Buying and Selling at OrthoPediatrics

In other news, Director David R. Pelizzon sold 326,700 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $23.04, for a total transaction of $7,527,168.00. Following the sale, the director owned 6,536,764 shares in the company, valued at approximately $150,607,042.56. This represents a 4.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Squadron Capital Llc sold 326,700 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $23.04, for a total value of $7,527,168.00. Following the sale, the insider owned 6,536,764 shares in the company, valued at $150,607,042.56. The trade was a 4.76% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 2,100,000 shares of company stock worth $46,747,931. 32.50% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on KIDS shares. Needham & Company LLC reaffirmed a “buy” rating and set a $35.00 price objective on shares of OrthoPediatrics in a report on Wednesday. Stifel Nicolaus increased their target price on OrthoPediatrics from $24.00 to $27.00 and gave the stock a “buy” rating in a report on Wednesday. Canaccord Genuity Group raised their target price on OrthoPediatrics from $28.00 to $30.00 and gave the stock a “buy” rating in a research report on Wednesday. Weiss Ratings raised OrthoPediatrics from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, August 5th. Finally, TD Cowen upped their price target on OrthoPediatrics from $23.00 to $28.00 and gave the company a “buy” rating in a research report on Wednesday. Seven analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $30.75.

OrthoPediatrics Company Profile

OrthoPediatrics Corp. is a medical device company focused exclusively on developing and commercializing orthopedic products for children. The company designs implants, instruments and related technologies intended to address the distinct anatomical and clinical needs of pediatric patients, including those with congenital conditions, traumatic injuries and musculoskeletal disorders.

Its product portfolio covers pediatric trauma and deformity correction, scoliosis, limb reconstruction, sports medicine and other specialized orthopedic procedures.