It's been a good week for Orthofix Medical Inc. (NASDAQ:OFIX) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.6% to US$12.07. It looks like the results were pretty good overall. While revenues of US$197m were in line with analyst predictions, statutory losses were much smaller than expected, with Orthofix Medical losing US$0.52 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the current consensus from Orthofix Medical's five analysts is for revenues of US$854.4m in 2026. This would reflect an okay 3.5% increase on its revenue over the past 12 months. Losses are expected to increase slightly, to US$1.57 per share. Before this latest report, the consensus had been expecting revenues of US$855.6m and US$1.31 per share in losses. So it's pretty clear the analysts have mixed opinions on Orthofix Medical even after this update; although they reconfirmed their revenue numbers, it came at the cost of a notable increase in per-share losses.

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 5.5% to US$17.25, with the analysts signalling that growing losses would be a definite concern. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Orthofix Medical analyst has a price target of US$20.00 per share, while the most pessimistic values it at US$14.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Orthofix Medical's revenue growth is expected to slow, with the forecast 4.7% annualised growth rate until the end of 2026 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Orthofix Medical is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Orthofix Medical's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Orthofix Medical. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Orthofix Medical going out to 2028, and you can see them free on our platform here..

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.