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Globus Medical, Inc. (GMED) reported adjusted earnings per share (EPS) of 72 cents in the first quarter of 2024, which beat the Zacks Consensus Estimate by 30.9%. The metric increased 35.8% year over year.The adjusted EPS excludes certain non-recurring expenses and benefits like the amortization of intangibles, acquisition-related costs/licensing and provision for litigation, among others.Without adjustments, the company registered a GAAP diluted loss of 5 cents compared with the year-ago EPS of 48 cents.Re ...

Financial Data and Key Metrics Changes - The company reported Q1 2024 sales of $606.7 million, growing 119.3% year-over-year, with a non-GAAP EPS of $0.72, an increase of 36% compared to the prior year [121][129][118] - Adjusted EBITDA for Q1 was 28%, and free cash flow totaled $24 million [121][118] - GAAP net loss for Q1 was $7.1 million, resulting in a GAAP loss of $0.05 per share [129] Business Line Data and Key Metrics Changes - U.S. Spine sales grew 100% in Q1, driven by strong performance across various product categories [25] - Enabling technology sales reached $32 million, up 27.5% year-over-year, marking the highest Q1 since launch [33][154] - The combined trauma and NSO business delivered 308% growth for Q1, benefiting from the merger [125] Market Data and Key Metrics Changes - International sales were $123.7 million, growing 190.7% year-over-year [14] - On a pro forma basis, international revenue grew 8.1%, led by spinal implant growth in key countries [131] - The company noted a strong pipeline of potential NuVasive accounts that do not currently have robotic systems, indicating significant cross-selling opportunities [44] Company Strategy and Development Direction - The company launched five new products in Q1 and plans to continue this momentum with more launches in the coming months [5][152] - Focus on integrating the Globus and NuVasive field organizations to create a unified sales force and enhance product offerings [110] - Commitment to achieving $170 million in cost synergies, with expectations to realize $68 million during 2024 [164] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term prospects, emphasizing the strength of the combined R&D and product portfolio [10][32] - The company expects to see a return to historical norms in sales transactions, with a strong pipeline moving into Q2 [145] - Management remains cautiously optimistic about the year, adjusting revenue guidance upwards based on strong Q1 performance [19][165] Other Important Information - Research and development expenses for Q1 were $57.3 million, or 9.4% of sales, including a $12.6 million charge related to in-process R&D [15] - The company has $191.7 million remaining on its authorized share repurchase program, demonstrating confidence in its stock value [37] - The GAAP tax rate for Q1 was 16.8%, down from 22.3% in the prior year, influenced by lower pretax profit and discrete items [36] Q&A Session Summary Question: Can you clarify the dissynergy number and its impact on guidance? - Management acknowledged the $150 million dissynergy estimate but noted that the increase in guidance reflects strong performance across the business [20][21] Question: How is the hiring process evolving post-merger? - Management indicated that 2024 could be a record year for hiring, with a strong pipeline of competitive reps seeking to join the company [111][52] Question: What is the outlook for the robotics market and competition? - Management remains confident in their competitive position, emphasizing continued investment in technology and product innovation [141][142] Question: Any updates on the ReconRobotics and its market entry? - The company is awaiting FDA approval for ReconRobotics and is building inventory in preparation for rollout [62][98] Question: How does the company view potential product rationalization? - Management stated there are no plans for proactive product rationalization, focusing instead on meeting customer needs [71] Question: What are the expectations for gross margins moving forward? - Management expects gross margins to improve as cost-saving measures take effect, with a focus on achieving mid-30s EBITDA margins in the future [83][99]

For the quarter ended March 2024, Globus Medical (GMED) reported revenue of $606.67 million, up 119.3% over the same period last year. EPS came in at $0.72, compared to $0.53 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $586.66 million, representing a surprise of +3.41%. The company delivered an EPS surprise of +30.91%, with the consensus EPS estimate being $0.55.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...

Globus Medical (GMED) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 30.91%. A quarter ago, it was expected that this medical device company would post earnings of $0.59 per share when it actually produced earnings of $0.60, delivering a surprise of 1.69%.Over the last four quarters, ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited Q1 2024 consolidated financial statements reflect a net loss and significant changes in financial profile post-NuVasive merger | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total current assets (in thousands) | $1,828,574 | $1,915,374 | | Total assets (in thousands) | $4,943,612 | $5,086,083 | | Total current liabilities (in thousands) | $786,324 | $392,347 | | Total liabilities (in thousands) | $1,021,251 | $1,088,124 | | Total equity (in thousands) | $3,922,361 | $3,997,959 | | Account | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net sales (in thousands) | $606,666 | $276,688 | | Gross profit (in thousands) | $365,179 | $205,863 | | Operating income/(loss) (in thousands) | $7,997 | $56,403 | | Net income/(loss) (in thousands) | $(7,117) | $49,129 | | Diluted EPS | $(0.05) | $0.48 | | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities (in thousands) | $52,387 | $53,313 | | Net cash provided by/(used in) investing activities (in thousands) | $(46,584) | $10,992 | | Net cash provided by/(used in) financing activities (in thousands) | $(115,721) | $2,940 | | Net increase/(decrease) in cash (in thousands) | $(113,230) | $67,219 | [Note 1. Background](index=7&type=section&id=Note%201.%20Background) Globus Medical, a musculoskeletal medical device company, completed its merger with NuVasive, Inc. on September 1, 2023, becoming the accounting acquirer - The company develops and commercializes healthcare solutions for musculoskeletal disorders, focusing on implants, robotic guidance, and orthopedic trauma products[14](index=14&type=chunk) - On September 1, 2023, Globus Medical merged with NuVasive, Inc., with Globus as the accounting acquirer, impacting prior period comparability[18](index=18&type=chunk)[19](index=19&type=chunk) [Note 3. Asset Acquisitions and Business Combinations](index=12&type=section&id=Note%203.%20Asset%20Acquisitions%20and%20Business%20Combinations) Q1 2024 saw a biotech acquisition with **$12.6 million** in expensed IPR&D, alongside the preliminary **$2.6 billion** NuVasive merger purchase price allocation, including **$1.23 billion** in goodwill - In Q1 2024, the company acquired a biotech company and expensed **$12.6 million** for acquired in-process research and development (IPR&D)[60](index=60&type=chunk) NuVasive Merger Preliminary Purchase Price Allocation (in thousands) | Component | Value | | :--- | :--- | | Total Value Class A Common Stock | $2,153,860 | | Repayment of revolving credit facility | $420,762 | | Fair value of assumed equity awards | $28,635 | | **Total purchase price** | **$2,603,836** | | Fair value of acquired identifiable net assets | $1,369,361 | | **Goodwill** | **$1,234,475** | [Note 4. Net Sales](index=15&type=section&id=Note%204.%20Net%20Sales) Total net sales for Q1 2024 significantly increased to **$606.7 million**, with Musculoskeletal Solutions remaining the largest product category at **$574.7 million** Net Sales by Product Category (in thousands) | Product Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Musculoskeletal Solutions | $574,697 | $251,607 | | Enabling Technologies | $31,969 | $25,081 | | **Total net sales** | **$606,666** | **$276,688** | [Note 11. Debt](index=19&type=section&id=Note%2011.%20Debt) The company assumed **$450.0 million** in 0.375% Senior Convertible Notes due 2025 from the NuVasive merger and maintains an undrawn **$400.0 million** revolving credit facility - The company assumed **$450.0 million** in principal of 0.375% Senior Convertible Notes due 2025 from the NuVasive merger[95](index=95&type=chunk) - The 2025 Notes are convertible into Class A Common Stock at a rate equivalent to a conversion price of approximately **$124.38 per share**[96](index=96&type=chunk) - The company has an undrawn **$400.0 million** revolving credit facility as of March 31, 2024[94](index=94&type=chunk) [Note 12. Equity](index=22&type=section&id=Note%2012.%20Equity) In Q1 2024, the company repurchased **1.6 million** Class A common shares for **$83.3 million**, with **$191.7 million** remaining under the repurchase authorization - In Q1 2024, the company repurchased **1.6 million** shares of Class A common stock for **$83.3 million**[107](index=107&type=chunk) - As of March 31, 2024, **$191.7 million** was remaining under the share repurchase authorization[107](index=107&type=chunk) [Note 15. Restructuring and Other Costs](index=26&type=section&id=Note%2015.%20Restructuring%20and%20Other%20Costs) The company incurred **$24.0 million** in pre-tax costs in Q1 2024 for its '2024 Synergy Plan' post-merger, with **$19.1 million** recorded as restructuring costs - The company incurred **$24.0 million** in pre-tax costs in Q1 2024 related to its '2024 Synergy Plan' to optimize the post-merger organization[129](index=129&type=chunk)[130](index=130&type=chunk) - Of the total costs, **$19.1 million** was classified as 'Restructuring Costs' on the income statement, mainly for employee termination benefits[130](index=130&type=chunk) [Note 18. Segment and Geographic Information](index=29&type=section&id=Note%2018.%20Segment%20and%20Geographic%20Information) The company aggregates its two operating segments into one reportable segment, with the United States accounting for **$482.9 million** of Q1 2024 net sales Net Sales by Geographic Area (in thousands) | Region | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | United States | $482,927 | $234,120 | | International | $123,739 | $42,568 | | **Total** | **$606,666** | **$276,688** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, highlighting a **119.3% surge in net sales** to **$606.7 million** due to the NuVasive merger, offset by significantly higher operating costs leading to a net loss Net Sales Change by Geography (in thousands) | Geography | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | United States | $482,927 | $234,120 | $248,807 | 106.3% | | International | $123,739 | $42,568 | $81,171 | 190.7% | | **Total net sales** | **$606,666** | **$276,688** | **$329,978** | **119.3%** | - The increase in net sales was primarily due to the addition of NuVasive[153](index=153&type=chunk)[154](index=154&type=chunk) - Cost of sales increased by **241.0%** to **$241.5 million**, driven by the NuVasive addition, amortization of inventory fair value step-up, and increased volume[155](index=155&type=chunk) - Operating expenses increased significantly: R&D rose **171.6%** to **$57.3 million**, SG&A rose **103.2%** to **$248.7 million**, and Amortization of Intangibles rose **545.0%** to **$29.7 million**, all primarily due to the NuVasive merger[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) - The company recorded **$19.1 million** in restructuring costs in Q1 2024 related to the 2024 Synergy Plan, primarily for employee termination benefits[161](index=161&type=chunk) - Cash used in financing activities increased to **$115.7 million**, primarily due to **$83.3 million** in common stock repurchases and payments for business acquisition liabilities[171](index=171&type=chunk)[107](index=107&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No significant changes to quantitative and qualitative market risk disclosures were reported compared to the 2023 Annual Report on Form 10-K - There have been no significant changes to the market risk information disclosed in the 2023 Annual Report on Form 10-K[178](index=178&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[180](index=180&type=chunk) - There were no material changes in the company's internal control over financial reporting during the first quarter of 2024[181](index=181&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, including a favorable defense verdict in the Moskowitz Family LLC patent infringement case in December 2023 - The company is subject to legal proceedings arising in the ordinary course of business[186](index=186&type=chunk) - In the Moskowitz Family LLC patent infringement lawsuit, a jury returned a defense verdict in favor of Globus in December 2023. No liability has been recorded for this matter as of March 31, 2024[137](index=137&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K were reported - There have been no material changes to the risk factors set forth in the company's 2023 Annual Report on Form 10-K[188](index=188&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1.6 million** Class A common shares for **$83.3 million** in Q1 2024, with **$191.7 million** remaining under the authorization Share Repurchases in Q1 2024 (in thousands, except per share prices) | Period | Total Shares Purchased | Average Price Paid per Share | Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | Jan 2024 | 717 | $52.80 | $237,367 | | Feb 2024 | 464 | $51.94 | $213,291 | | Mar 2024 | 416 | $51.84 | $191,732 | | **Total** | **1,597** | **-** | **-** | - The share repurchase program was expanded in September 2023 by an additional **$350.0 million**[189](index=189&type=chunk) [Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable - Not applicable[192](index=192&type=chunk) [Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[193](index=193&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) Not applicable - Not applicable[194](index=194&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including CEO/CFO certifications and XBRL data files - The report includes a list of filed exhibits, such as CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL documents[196](index=196&type=chunk)

Globus Medical Reports First Quarter 2024 Results AUDUBON, PA, May 7, 2024: Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal solutions company, today announced its financial results for the quarter ended March 31, 2024. "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 partners ...

Wall Street analysts expect Globus Medical (GMED) to post quarterly earnings of $0.55 per share in its upcoming report, which indicates a year-over-year increase of 3.8%. Revenues are expected to be $586.66 million, up 112% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company announces its earnings, it is essential to ...

Investors with an interest in Medical - Instruments stocks have likely encountered both Globus Medical (GMED) and Penumbra (PEN) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Sc ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores a ...