- Monday, OrthoPediatrics Corp CHILDREN preannounced 4Q22 revenue of $31.0 million (up 25%), below consensus of $33.2 million.
- The Company noted that increased respiratory illnesses (e.g., COVID, influenza, RSV) were causing process disruptions at children’s hospitals and impacting its fourth quarter 22 results.
- Needham writes that while Q422 results are disappointing, the rise in respiratory diseases is a temporary concern and expects growth to improve in 2023. Therefore, the analyst maintains the buy recommendation.
- stalk writes that cases have returned to more “typical” seasonal levels after the mid-December RSV peak. Also during the quarter, infant flu cases were “seven times the all-time high” but are now more in line with normal historical trends.
- The Stifel analyst also notes that the initial guidance for 2023 includes ongoing staffing shortages and the international business has been less affected by the pressures of the RSV process, although select markets remain unsettled.
- For FY22, preliminary revenue is $122.3 million, +25% Y/Y, below consensus of $124.48 million.
- The company also provided FY23 revenue guidance of $146-149 million, below the consensus of $152.82 million.
- Price promotion: KIDS shares are down 0.95% to $43.84 on Tuesday’s most recent check.
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