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OrthoPediatrics reported 3Q22 orthopedic sales of $35 million, +39.4% compared to the third quarter of 2021. Despite generating record revenues, the company expressed disappointment at underperforming internal expectations.
The third quarter brought stronger-than-expected sales from recent acquisitions of Pega Medical and MD Ortho. However, organic growth of 22% came in under OrthoPediatrics’ forecast.
Company CEO David Bailey said, “We experienced extreme swings in case volumes in numerous locations late in the quarter. Hospital staffing and capacity constraints and a high rate of respiratory illness, or RSV, negatively impacted case volumes. RSV is filling beds and significantly reducing the capacity for surgery. This started showing up in September and has continued through October.”
As a result of reduced surgical capacity, OrthoPediatrics lowered its 2022 guidance to the range of $124 million to $125 million, representing growth between 26% and 27%. The guidance assumes an $11 million contribution from acquisitions.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $10.0 | $7.3 | $2.7 | 37.3% |
| Trauma | $23.9 | $16.8 | $7.1 | 42.1% |
| Sports Medicine | $1.1 | $1.0 | $0.1 | 8.3% |
| Total | $35.0 | $25.1 | $9.9 | 39.4% |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $25.4 | $20.9 | $4.5 | 21.6% |
| Trauma | $63.0 | $49.3 | $13.7 | 27.7% |
| Sports Medicine | $2.9 | $3.1 | ($0.1) | (4.1%) |
| Total | $91.3 | $73.2 | $18.1 | 24.7% |
Orthopedic Sales by Geography
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $26.5 | $19.4 | $7.2 | 37.1% |
| OUS | $8.4 | $5.7 | $2.7 | 46.9% |
| Total | $35.0 | $25.1 | $9.9 | 39.4% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $69.7 | $57.9 | $11.8 | 20.3% |
| OUS | $21.6 | $15.3 | $6.3 | 41.2% |
| Total | $91.3 | $73.2 | $18.1 | 24.7% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $35.0 | |
| Cost of Sales | $9.1 | 25.9% |
| General and Admin | $11.9 | 34.1% |
| Selling and Marketing | $15.1 | 43.3% |
| R & D | $2.2 | 6.3% |
| Other | ($10.0) | 28.5% |
| Net Earnings | $18.5 | 53% |
OrthoPediatrics reported 3Q22 orthopedic sales of $35 million, +39.4% compared to the third quarter of 2021. Despite generating record revenues, the company expressed disappointment at underperforming internal expectations.
The third quarter brought stronger-than-expected sales from recent acquisitions of Pega Medical and MD Ortho....
OrthoPediatrics reported 3Q22 orthopedic sales of $35 million, +39.4% compared to the third quarter of 2021. Despite generating record revenues, the company expressed disappointment at underperforming internal expectations.
The third quarter brought stronger-than-expected sales from recent acquisitions of Pega Medical and MD Ortho. However, organic growth of 22% came in under OrthoPediatrics’ forecast.
Company CEO David Bailey said, “We experienced extreme swings in case volumes in numerous locations late in the quarter. Hospital staffing and capacity constraints and a high rate of respiratory illness, or RSV, negatively impacted case volumes. RSV is filling beds and significantly reducing the capacity for surgery. This started showing up in September and has continued through October.”
As a result of reduced surgical capacity, OrthoPediatrics lowered its 2022 guidance to the range of $124 million to $125 million, representing growth between 26% and 27%. The guidance assumes an $11 million contribution from acquisitions.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $10.0 | $7.3 | $2.7 | 37.3% |
| Trauma | $23.9 | $16.8 | $7.1 | 42.1% |
| Sports Medicine | $1.1 | $1.0 | $0.1 | 8.3% |
| Total | $35.0 | $25.1 | $9.9 | 39.4% |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $25.4 | $20.9 | $4.5 | 21.6% |
| Trauma | $63.0 | $49.3 | $13.7 | 27.7% |
| Sports Medicine | $2.9 | $3.1 | ($0.1) | (4.1%) |
| Total | $91.3 | $73.2 | $18.1 | 24.7% |
Orthopedic Sales by Geography
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $26.5 | $19.4 | $7.2 | 37.1% |
| OUS | $8.4 | $5.7 | $2.7 | 46.9% |
| Total | $35.0 | $25.1 | $9.9 | 39.4% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $69.7 | $57.9 | $11.8 | 20.3% |
| OUS | $21.6 | $15.3 | $6.3 | 41.2% |
| Total | $91.3 | $73.2 | $18.1 | 24.7% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $35.0 | |
| Cost of Sales | $9.1 | 25.9% |
| General and Admin | $11.9 | 34.1% |
| Selling and Marketing | $15.1 | 43.3% |
| R & D | $2.2 | 6.3% |
| Other | ($10.0) | 28.5% |
| Net Earnings | $18.5 | 53% |
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
