Orthofix swings to Q4 black

Orthofix (NSDQ:OFIX) yesterday put black ink in the ledger for the fourth quarter and beat the consensus forecast as it contemplates moving its corporate registration from Curacao to the U.S.

The Lewisville, Texas-based orthopedics company posted profits of $1.6 million, or 8¢ per share, on sales of $116.9 million for the three months ended Dec. 31, 2017, compared with losses of -$3.2 million on sales growth of 7.7% over Q4 2016.

Adjusted to exclude one-time items, earnings per share were 52¢, two pennies ahead of Wall Street, where analysts were looking for sales of $114.5 million.

Full-year profits rose 103.6% to $6.2 million, or $34¢ per share, on sales growth of 5.9% to $433.8 million compared with the prior year. Adjusted EPS came in at $1.62, a penny ahead of The Street and its sale forecast of $431.3 million.

“2017 was a very strong year for Orthofix. We exceeded our top-line expectations and finished the year with a solid margin improvement trajectory. We also made significant progress in the transformation of our spine fixation business and completed our worldwide restructuring initiatives,” president & CEO Brad Mason said in prepared remarks. “With 2017 in the rear-view mirror, we are now focused fully on executing our 2018 global and business unit strategies. Globally, we expect to drive shareholder value through three pillars, top-line organic growth better-than-market-growth rates, margin expansion through operational improvements and strategic deployment of our capital in ways that we believe will accelerate top-line growth in our core businesses. We are well positioned and expect to execute in each of these areas in 2018.”

Orthofix said it expects to report adjusted EPS of $1.76 to 1.84 this year on sales $450.0 million to $455.0 million.

OFIX shares were up 3.6% to $56.79 apiece today in morning trading.

Orthofix also said its review of redomiciling to the U.S. concluded that the move could confer “a number of benefits” including a lower tax rate and increased cash flow.

“Subject to the outcome of final diligence, the company currently anticipates requesting shareholder approval for this move in conjunction with its annual shareholder meeting later this year,” Orthofix said.

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