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Core Viewpoint - Globus Medical reported strong earnings and revenue growth in Q1 2024, driven by the acquisition of NuVasive and increased sales in spine products and enabling technologies, although margins contracted due to rising costs [2][4][8]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2024 were 72 cents, exceeding the Zacks Consensus Estimate by 30.9% and reflecting a 35.8% year-over-year increase [2]. - Total revenues for the quarter reached $606.7 million, marking a 119.3% year-over-year increase and surpassing the Zacks Consensus Estimate by 3.4% [4]. - The company reported a GAAP diluted loss of 5 cents, compared to an EPS of 48 cents in the previous year [3]. Revenue Breakdown - U.S. net sales increased by 106.3% year-over-year to $482.9 million, while international revenues surged by 190.7% to $123.7 million [5]. - Musculoskeletal Solutions generated revenues of $574.7 million, up 128.4% year-over-year, primarily due to the NuVasive merger [6]. - Enabling Technologies reported revenues of $32 million, a 27.5% increase from the prior year [7]. Margin Analysis - Gross profit rose 77.4% year-over-year to $365.2 million, but gross margin contracted by 1,421 basis points to 60.2% due to a 241% increase in the cost of sales [8]. - Adjusted operating profit fell 5.1% year-over-year to $59.2 million, with the adjusted operating margin contracting by 1,278 basis points to 9.8% [9]. Cash Position - At the end of Q1 2024, the company had combined cash and cash equivalents of $434.5 million, down from $517.8 million at the end of 2023 [9]. - Cumulative net cash provided by operating activities was $52.4 million, slightly down from $53.3 million year-over-year [10]. 2024 Guidance - The company updated its full-year net sales guidance to a range of $2.460 billion to $2.485 billion, with adjusted EPS guidance revised to $2.75 to $2.85 [11]. - The Zacks Consensus Estimate for net sales is currently pegged at $2.46 billion, while the adjusted EPS estimate is at $2.69 [11]. Market Position - Globus Medical holds a Zacks Rank 3 (Hold) and has a strong aggregate VGM Score of A, indicating positive growth and momentum [12][13]. - In comparison, Avanos Medical, a peer in the medical instruments industry, reported a revenue decline of 13.4% year-over-year, highlighting Globus Medical's stronger performance [14].

Shares of Globus Medical (GMED) reached a new 52-week high of $67.37 on May 22 before closing the session marginally lower at $67.15. In the past year, this Zacks Rank #3 (Hold) stock has rallied 25.8% compared with the 12.1% growth of the industry and the S&P 500 composite's rise of 29.5%. Globus Medical has an expected 2024 sales growth rate of 57.8%. Earnings for the year are projected to increase by 20.7% compared with the industry's 13.3%. The company topped earnings estimates in each of the trailing f ...

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Investors interested in Medical - Instruments stocks are likely familiar with Globus Medical (GMED) and Penumbra (PEN) . But which of these two stocks presents investors with the better value opportunity right now? 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 is a proven strategy that targets companies with positive earnings estimate revision tr ...

Have you been paying attention to shares of Globus Medical (GMED) ? Shares have been on the move with the stock up 16.2% over the past month. The stock hit a new 52-week high of $65.74 in the previous session. Globus Medical has gained 15.8% since the start of the year compared to the 3.1% move for the Zacks Medical sector and the 4.9% return for the Zacks Medical - Instruments industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our ear ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of 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.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?The Zacks Style ...

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 ...