Globus Medical, Inc. GMED shares are trading higher Wednesday after the company posted better-than-expected first-quarter financial results and raised its fiscal year 2024 guidance.
The Details:
Globus Medical reported quarterly earnings of 72 cents per share which beat the analyst consensus estimate of 57 cents by 26.32% and represents a 35.85% increase over earnings from the same period last year.
Quarterly sales came in at $606.67 million which beat the analyst consensus estimate by 3.33% and is a 119.26% increase in sales year-over-year.
“Since the NuVasive merger closed in September of last year, we worked aggressively to execute our integration strategy and are making significant progress towards rapidly reaching steady state. I am pleased with the first quarter results delivered by strong teamwork and partnership throughout our organization. Surgeons and hospitals are responding favorably to our best-in-class product offering of clinically advanced devices and enabling technologies and worldwide sales reflect the long-term potential of our company,” said Dan Scavilla, CEO of Globus Medical.
Outlook:
The company updated its guidance for full year 2024 revenue to be in the range of $2.46 billion to $2.485 billion and earnings per share in the range of $2.75 to $2.85. The updated guidance is an increase over the prior full year 2024 revenue guidance of $2.45 billion to $2.475 billion and earnings per share guidance of $2.68 to $2.70.
Analysts React:
Multiple analysts raised their price targets on the stock after the print:
BTIG analyst Ryan Zimmerman maintained a Buy rating and raised the price target from $60 to $63.
Piper Sandler maintained Globus Medical with a Neutral and raised its price target from $55 to $60.
Stifel analyst Mathew Blackman maintained a Buy rating and raised the price target from $64 to $70.
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GMED Price Action: According to Benzinga Pro, Globus Medical shares are up 23.6% at $63.50 at the time of publication Wednesday.
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