WARSAW, Ind. - OrthoPediatrics Corp. (NASDAQ: NASDAQ:KIDS), a company dedicated to pediatric orthopedics, announced the creation of its Enabling Technologies division today. The new division aims to extend the company's reach into digital health and advanced technology sectors, focusing on pediatric care.
The division, led by Kevin Unger, will build upon OrthoPediatrics' existing distribution of the 7D Flash™ Navigation System and its partnership with 3D Side, S.A. for patient-specific cutting guides. OrthoPediatrics is also preparing to launch two innovative technology platforms: Playbook, a surgical workflow optimization tool, and a robotic-assistance system for cochlear implant surgery developed in collaboration with iotaMotion, Inc. These platforms are designed to improve surgical planning and execution, potentially leading to better outcomes and more efficient procedures.
David Bailey, CEO of OrthoPediatrics, expressed excitement about the new division's potential to expand the company's impact on children's lives and drive long-term growth. He believes these advancements will reinforce OrthoPediatrics' leadership in pediatric digital health and enabling technologies.
The announcement coincides with the company's Investor Day, held in New York, New York, where further details about the division and its initiatives will be discussed. A live webcast of the presentation and a recording will be available on the company's investor relations website.
OrthoPediatrics, founded in 2006, is known for its comprehensive product range designed to address various aspects of pediatric orthopedic care. The company's products, which now exceed 70 in number, cover trauma, deformity, scoliosis, and sports medicine. With a dedicated sales organization, OrthoPediatrics distributes its products in the United States and over 70 countries worldwide.
This news article is based on a press release statement from OrthoPediatrics Corp.
In other recent news, OrthoPediatrics Corp. reported a significant surge in growth for Q2 2024, with a 52% increase in the number of children served and a 33% rise in revenue, hitting a record $52.8 million. This growth was primarily driven by the trauma and deformity, domestic scoliosis, and specialty bracing businesses. The company is steadfast in its full-year 2024 revenue guidance of $200 million to $203 million.
OrthoPediatrics also unveiled its future growth strategies, which include new product launches and international expansion. In line with these plans, the company secured a $25 million term loan and additional access to a $25 million delayed draw term loan facility. A stock repurchase program of up to $5 million was also disclosed.
Piper Sandler and BTIG reaffirmed their positive ratings on OrthoPediatrics, with Piper Sandler emphasizing the company's expansion into the pediatric specialty bracing market and BTIG expressing anticipation for the company's first Analyst & Investor Event. Both firms maintained a steady price target of $44.00.
Finally, OrthoPediatrics expects to generate $8-9 million in adjusted EBITDA in 2024 and aims to achieve cash flow breakeven by 2026.
InvestingPro Insights
As OrthoPediatrics Corp. (NASDAQ: KIDS) embarks on its journey to enhance pediatric care through its new Enabling Technologies division, the company's financial health and market performance remain crucial for investors tracking its growth trajectory. With a market capitalization of approximately $755.49 million, OrthoPediatrics is positioning itself as a significant player in the pediatric orthopedic space.
InvestingPro data reveals that the company has seen a robust 27.7% revenue growth over the last twelve months as of Q2 2024, indicating a solid expansion in its operations. This is further underscored by a quarterly revenue growth of 33.48% in Q1 2024, showcasing the company's ability to increase its sales in a competitive market.
Despite not being profitable over the last twelve months, with a P/E ratio of -28.72, OrthoPediatrics has made strides in its market performance, delivering a strong return of 21.02% over the last month. This suggests investor confidence may be growing in light of the company's strategic moves and product launches.
InvestingPro Tips highlight that analysts have recently revised their earnings upwards for the upcoming period, which could signal an optimistic outlook on the company's future profitability. Additionally, OrthoPediatrics operates with a moderate level of debt and has liquid assets that exceed short-term obligations, providing a cushion for operational flexibility.
While analysts do not anticipate the company will be profitable this year, and it does not pay a dividend to shareholders, the positive market response and the potential of the new Enabling Technologies division could provide a foundation for future growth. For investors seeking a deeper dive into the company's prospects, there are additional InvestingPro Tips available at InvestingPro, offering a comprehensive analysis to aid in investment decisions.
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