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Oppenheimer Reviews K2M Group's Q2 Earnings


Oppenheimer reviewed K2M Group Holdings Inc (NASDAQ: KTWO)'s second quarter earnings in its note published Thursday.

K2M reported 2Q16 revenue of $59.2 million, beating both Oppenheimer's estimate of $57.2 million and the consensus of $57.5 million. The company maintained its 2016 sales guidance of $231-235 million, which assumes high-teens U.S. growth and mid- to high-teens OUS declines.

The analysts forecast faster growth in 2H16 on easing comps, new product rollouts, and increasing impact of the recent salesforce expansion. They lifted the 2016 estimated sales/EPS to $234 million/($1.10) from $231.5 million/($1.11) on stronger than expected Q2 performance.

"For '17, we forecast sales of $271M (+16% y/y) led by solid US growth and accelerated international (we build in some Australia/Japan recovery). Recent sales hires should be a larger contributor in '17 as well," wrote Oppenheimer.

The company has an Outperform rating on K2M Group with a $23 price target. The analysts believe the company is well positioned to continue to take share in the spine market owing to a strong portfolio in the attractive complex spine market, recent new sales force hires, a building MIS platform and the company's innovative Lamellar 3D product platform.

Latest Ratings for KTWO

Sep 2018DowngradesOutperformSector Perform
Sep 2018DowngradesOutperformMarket Perform
Sep 2018DowngradesOverweightNeutral

View More Analyst Ratings for KTWO
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Posted-In: OppenheimerAnalyst Color Earnings News Analyst Ratings


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