OFIX - Orthofix stock falls amid SeaSpine merger despite rise in prelim Q3 revenue

Orthofix Medical ( NASDAQ: OFIX ) reported preliminary Q3 revenue results $114M, which is seen above analysts estimates, amid a merger announcement with SeaSpine ( NASDAQ: SPNE ).

The company said the projected Q3 sales of $114M, shows an increase of 1% on a reported basis and 5% on a constant currency basis  Y/Y. Consensus Revenue Estimates (4 analysts) for Q3 is $111.21M.

"We delivered strong performance in Global Orthopedics, Biologics, and Bone Growth Therapies despite experiencing some continued macro headwinds," said Orthofix President and CEO Jon Serbousek in an Oct. 11 press release.

"While we experienced some softness in Spinal Implants, we are encouraged by the M6-C resurgence in the U.S. as we exited the quarter," added Serbousek.

Revenue from Bone Growth Therapies grew +3% Y/Y on reported basis to $46M.

Meanwhile, Spinal Implants revenue fell 8% Y/Y on reported basis to $26M. The company said there was decreased levels per case in Spine Fixation. Plus Motion Preservation continued to see competitive pressure, but the company exited the quarter with Y/Y growth in September.

Global Spine revenue was flat at $86M in Q3.

As of Sept. 30, preliminary cash, cash equivalents, and restricted cash was ~$52M.

OFIX -7.61% to $17.00 premarket

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