1. Exactech has a number of elements working against it including: little Wall Street exposure throughout 2016, with only three analysts covering the stock, a short company history and limited resources for research, development or acquisition.
2. Revenue momentum and improved margins are driving the growth at Exactech. The company saw an 8 percent year-over-year increase during the second quarter. It was led by the sale of its extremity orthopedic implants and its hip implant products.
The gross margins went to 69.3 percent from 68.6 percent which saw the earnings per share increase to 31 cents.
3. It’s second quarter outlook showed that management increased revenue guidance for 2016 by 1 percent to $258 million. It also raised the lower end of its full-year earnings guidance range to $1.15 to $1.19 per share versus the $1.04 it posted in 2015.
4. Exactech recently launched three revision systems for replacing older impacts. Revision systems allow the company to gain market shares at the expense of its competition, even if a patient has received a product from another company.
5. The company was founded by an orthopedic surgeon and a biomechanical engineer.
6. The company has several new products lined up for the end of 2016, which is expected to drive growth.
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