K2M Holdings beats on Q3 earnings, misses on sales

K2M (NSDQ:KTWO) yesterday topped the earnings consensus for its third-quarter but missed expectations for sales and lowered its earnings outlook for the rest of the year. The Leesburg, Va.-based orthopedics company posted losses of -$8.5 million, or -20¢ per share, on sales of $62.7 million for the three months ended Sept. 30, widening its losses by 7.0% on sales growth of 5.6% compared with Q3 2016. The results topped Wall Street’s consensus outlook on earnings by a penny but missed The Street’s $66.0 million sales forecast. “Our revenue results for the third quarter of 2017 reflect total revenue growth of 6% year-over-year on a GAAP basis and 5% on a constant-currency basis,” chairman, president & CEO Eric Major said in prepared remarks. “Although we continued to see growth, our third-quarter revenue performance was impacted by slower initial on-boarding of the new distribution team in the U.S., disruption of account activity and canceled procedures related to the hurricanes in Texas, Florida and Puerto Rico in early September. Third-quarter deformity trends were strong in July and August and we experienced strong headwinds in September. U.S. sales growth in our degenerative procedure category continued to be fueled by our new product introductions including our industry-leading 3D-printed portfolio, offset partially by modestly weaker procedure volumes as compared to last year. “We have made significant progress in 2017 toward our goal of introduc...
Source: Mass Device - Category: Medical Devices Authors: Tags: MassDevice Earnings Roundup Orthopedics Wall Street Beat K2M Source Type: news