Here's What Analysts Are Forecasting For Orthofix Medical Inc. (NASDAQ:OFIX) After Its Third-Quarter Results

Last week, you might have seen that Orthofix Medical Inc. (NASDAQ:OFIX) released its third-quarter result to the market. The early response was not positive, with shares down 5.1% to US$14.68 in the past week. The results don't look great, especially considering that statutory losses grew 40% toUS$0.57 per share. Revenues of US$206m did beat expectations by 2.8%, but it looks like a bit of a cold comfort. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Orthofix Medical from five analysts is for revenues of US$857.0m in 2026. If met, it would imply a reasonable 4.8% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 44% to US$1.68. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$859.6m and losses of US$1.58 per share in 2026. So it's pretty clear consensus is mixed on Orthofix Medical after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.

See our latest analysis for Orthofix Medical

As a result, there was no major change to the consensus price target of US$22.80, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Orthofix Medical, with the most bullish analyst valuing it at US$27.20 and the most bearish at US$18.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Orthofix Medical shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Orthofix Medical's past performance and to peers in the same industry. We would highlight that Orthofix Medical's revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Orthofix Medical.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Orthofix Medical. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Orthofix Medical's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Orthofix Medical analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Orthofix Medical that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.