Exactech slashes 3Q profit estimate

The maker of bone and joint restorations products said it expects quarterly earnings per share of 15 cents, well below its original estimate of 21 cents to 23 cents per share. Exactech cited higher-than-expected legal expenses of about $1.4 million, or 7 cents per share after taxes, for the outlook reduction.

The company said the costs were tied to a previously announced Department of Justice inquiry. In December, the company received a subpoena requesting documents related to deals with orthopedic surgeons and other medical professionals. At the time, Exactech said it believed the subpoena was related to a probe into consulting and professional service agreements made by orthopedic-implant manufacturers and distributors.

However, Exactech maintained its revenue forecast, calling for sales to increase 26 percent to about $38 million. Chief Executive Officer William Petty said in a statement that quarterly domestic sales were softer than expected, but his company saw "continued strength" in international sales.

Exactech will release third-quarter earnings after the market closes on Oct. 28.

The company's stock dropped $1.80, or 9.4 percent, to $17.34. Over the past year, the shares have ranged between $15.50 and $31.73, and are down 8 percent since January.