Core Insights - Globus Medical Inc. (NYSE:GMED) experienced a significant stock price increase of 38.9% week-on-week, driven by positive analyst ratings and strong third-quarter earnings performance [1] Analyst Ratings and Price Targets - BofA Securities upgraded Globus Medical to a "buy" recommendation from a "neutral" rating, setting a new price target of $91, representing a 47% upside from the previous closing price of $61.71 [2] - Wells Fargo also raised its price target for the company to $79 from $66, reflecting positive sentiment following the earnings report [3] Earnings Performance - In the third quarter, Globus Medical reported a net income increase of 129%, reaching $118.97 million compared to $51.84 million in the same period last year [3] - The company's net sales grew by 22.9%, totaling $769 million, up from $625.7 million year-on-year [3] Revenue Guidance - For the full year, Globus Medical raised its revenue guidance to a range of $2.86 billion to $2.9 billion, which is an increase from the previous lower end of $2.80 billion [4] Company Outlook - The President and CEO of Globus Medical expressed satisfaction with the company's results and emphasized a focus on consistent organic growth through innovation and execution [5]

Core Insights - Ten large-cap stocks showed significant performance gains last week, driven by better-than-expected financial results and raised guidance for fiscal year 2025 [1] Company Performance Summary - **Globus Medical, Inc. (NYSE:GMED)**: Gained 39.79% after reporting better-than-expected Q3 results and raising FY2025 guidance [1] - **Sandisk Corporation (NASDAQ:SNDK)**: Gained 13.77% following better-than-expected Q1 results and issuing Q2 guidance above estimates [1] - **Lumentum Holdings Inc. (NASDAQ:LITE)**: Gained 15.30% after reporting better-than-expected Q1 results and issuing Q2 guidance above estimates [1] - **Datadog, Inc. (NASDAQ:DDOG)**: Gained 16.91% after better-than-expected Q3 results and raising FY2025 guidance above estimates [1] - **Expedia Group, Inc. (NASDAQ:EXPE)**: Gained 18.14% after beating Q3 earnings estimates and raising FY2025 guidance [1] - **Coherent Corp. (NYSE:COHR)**: Gained 15.82% after better-than-expected Q1 results and issuing Q2 sales guidance above estimates [1] - **Penumbra, Inc. (NYSE:PEN)**: Gained 19.58% after better-than-expected Q3 results and raising FY25 sales guidance above estimates [1] - **Teva Pharmaceutical Industries Limited (NYSE:TEVA)**: Gained 15.13% after beating Q3 earnings and revenue estimates and raising full-year EPS guidance [1] - **Madrigal Pharmaceuticals, Inc. (MDGL)**: Gained 19.90% after reporting better-than-expected Q3 sales results [1] - **DuPont de Nemours, Inc. (NYSE:DD)**: Gained 15.80% after beating Q3 earnings and revenue estimates [1]

Core Viewpoint - Globus Medical's acquisition of Nevro has positively impacted its financial performance, leading to a significant increase in stock value and an optimistic outlook for future earnings growth [2][3][4]. Financial Performance - Globus Medical reported third-quarter sales of $769 million, representing a 6.4% organic growth, surpassing forecasts of $735 million [4]. - Adjusted earnings per share reached $1.18, exceeding expectations of 78 cents, with a notable 42% increase year-over-year [4]. - Nevro's sales were $99 million, reflecting a modest 2% year-over-year growth, but its adjusted EBITDA margin improved to 16% from a prior loss of 1% [2][4]. Future Outlook - The company has raised its full-year sales guidance to a range of $2.86 billion to $2.9 billion, up from the previous range of $2.8 billion to $2.9 billion [6]. - Adjusted profit expectations have also increased to $3.75 to $3.85 per share, marking a 65-cent increase at the midpoint from previous guidance [6]. - Management anticipates that the Nevro division will become accretive by 2025, earlier than previously expected [3]. Market Reaction - Following the positive earnings report, Globus Medical's stock surged by 36.1%, closing at $83.89, marking an eight-month high and surpassing its 200-day moving average [3][4].

Core Insights - Shares of the medical technology company are experiencing their largest same-day percentage increase on record [1] Company Summary - The medical technology company is witnessing a significant surge in its stock price, indicating strong market performance and investor confidence [1]

Group 1: Affirm Holdings (AFRM) - Affirm Holdings reported an EPS of 23 cents, beating estimates by 12 cents [1][7] - Revenue reached $933.34 million, a 33.6% year-over-year increase, surpassing estimates by $49.98 million [1][7] - The company raised its gross merchandise volume (GMV) guidance to $47.5 billion from $46 billion and increased the adjusted operating margin outlook to 27.1% from 26.1% [1][7] Group 2: Expedia Group (EXPE) - Expedia Group's shares rose by about 17%, or $37.47 per share, driven by strong earnings [2] - The company raised its 2025 revenue growth forecast to between 6% and 7%, up from earlier estimates of 3% to 5% [2] - Bookings in the B2B segment increased by 26% to $9.38 billion during the third quarter [2] Group 3: Globus Medical (GMED) - Globus Medical's shares increased by about 29%, or $18 per share, following strong earnings [3] - The company reported an EPS of $1.18, beating estimates by 41 cents [3] - Revenue was $769 million, a 23% increase year-over-year, exceeding estimates by $34.33 million [3][4] Group 4: Akamai Technologies (AKAM) - Akamai Technologies' shares rose by about 10%, or $7.26 per share, due to strong earnings [5] - The company reported an EPS of $1.86, beating estimates by 22 cents [5] - Revenue was $1.05 billion, a 5% year-over-year increase, surpassing estimates by $10 million [5][6]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Motorsport Games Inc. (MSGM) has seen a substantial increase of 122%, trading at $4.88 [3] - Globus Medical, Inc. (GMED) is up 27%, currently priced at $78.75 [3] - JFrog Ltd. (FROG) has risen by 26%, trading at $59.60 [3] - FIGS, Inc. (FIGS) is up 19%, with a trading price of $8.97 [3] - Organogenesis Holdings Inc. (ORGO) has increased by 18%, trading at $4.59 [3] - PureCycle Technologies, Inc. (PCT) is up 17%, currently priced at $11.31 [3] - Expedia Group, Inc. (EXPE) has risen by 16%, trading at $255.10 [3] - 10x Genomics, Inc. (TXG) is up 13%, currently priced at $14.72 [3] - Abacus Global Management, Inc. (ABL) has increased by 12%, trading at $5.95 [3] - GigaCloud Technology Inc. (GCT) is up 9%, currently priced at $27.80 [3] Premarket Losers - Davis Commodities Limited (DTCK) has experienced a significant decline of 65%, trading at $2.23 [4] - Eledon Pharmaceuticals, Inc. (ELDN) is down 46%, currently priced at $2.19 [4] - Treace Medical Concepts, Inc. (TMCI) has decreased by 35%, trading at $4.00 [4] - Energys Group Limited (ENGS) is down 30%, currently priced at $2.77 [4] - Intellia Therapeutics, Inc. (NTLA) has seen a decline of 27%, trading at $8.89 [4] - Fox Factory Holding Corp. (FOXF) is down 24%, currently priced at $16.60 [4] - Opendoor Technologies Inc. (OPEN) has decreased by 24%, trading at $4.94 [4] - AirSculpt Technologies, Inc. (AIRS) is down 21%, currently priced at $8.27 [4] - Power Solutions International, Inc. (PSIX) has seen a decline of 20%, trading at $64.25 [4] - ClearPoint Neuro, Inc. (CLPT) is down 17%, currently priced at $15.00 [4]

Core Insights - Globus Medical reported revenue of $769.05 million for the quarter ended September 2025, reflecting a year-over-year increase of 22.9% [1] - The company's EPS was $1.18, up from $0.83 in the same quarter last year, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $733.45 million by 4.85%, while the EPS surpassed the consensus estimate of $0.79 by 49.37% [1] Revenue Breakdown - International revenue reached $151.42 million, exceeding the average estimate of $144.37 million by analysts, marking a 16.6% increase year-over-year [4] - U.S. revenue was reported at $617.63 million, surpassing the average estimate of $589.84 million, with a year-over-year growth of 24.6% [4] - Net sales in the Enabling Technologies category were $28.04 million, below the average estimate of $40.23 million, representing a decline of 26.8% year-over-year [4] - Musculoskeletal Solutions generated $741.01 million in net sales, exceeding the average estimate of $693.98 million, with a year-over-year increase of 26.2% [4] Stock Performance - Shares of Globus Medical have returned +1.8% over the past month, compared to a +1.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Globus Medical reported quarterly earnings of $1.18 per share, significantly exceeding the Zacks Consensus Estimate of $0.79 per share, marking an earnings surprise of +49.37% [1][2] Financial Performance - The company achieved revenues of $769.05 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.85% and showing an increase from $625.71 million year-over-year [2] - Over the last four quarters, Globus Medical has exceeded consensus EPS estimates three times and has also topped revenue estimates three times [2] Stock Performance - Globus Medical shares have declined approximately 25.6% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] - The current Zacks Rank for Globus Medical is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.89, with expected revenues of $770.15 million, and for the current fiscal year, the estimate is $3.21 on $2.85 billion in revenues [7] - The trend of estimate revisions for Globus Medical was mixed prior to the earnings release, which may change following the recent results [6] Industry Context - The Medical - Instruments industry, to which Globus Medical belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Globus Medical reported Q3 2025 sales of $769 million, a 22.9% increase year-over-year, with non-GAAP diluted earnings per share of $1.18, growing 42.6% compared to the prior year quarter [4][19][35] - Free cash flow reached a record $213.9 million for the quarter, contributing to a strong cash flow generation profile [4][33] - Adjusted EBITDA margin for the base Globus business was 35.3%, an increase of 435 basis points from the prior year quarter [5][21] Business Line Data and Key Metrics Changes - The U.S. spine business grew 9.6% as reported, continuing a trend of 32 weeks of consecutive growth [6][24] - Trauma business achieved a strong growth of 17.2%, marking the highest quarterly revenue since its inception [13][22] - Enabling technologies revenue declined 26.8% to $28 million, primarily due to lower sales of eGPS systems [8][22] Market Data and Key Metrics Changes - International spine business grew 5.6% as reported, with notable growth in EMEA and Asia-Pacific regions [11][12] - U.S. revenue during Q3 2025 was $617.6 million, growing 24.6% as reported, driven by strong performance in spine, trauma, and neuromonitoring [24][25] - Nevro contributed $99.3 million in revenue, growing 4.9% sequentially, indicating positive integration progress [15][23] Company Strategy and Development Direction - The company remains focused on partnering with surgeons to address unmet clinical needs and drive operational excellence [16] - There is a strategic shift towards flexible capital acquisition models, moving away from traditional cash sales to leasing and rental options [11][42] - The integration of Nevro is expected to enhance growth and profitability, with a focus on driving new product development and expanding the sales force [15][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the U.S. spine market and anticipates continued growth in both domestic and international markets [70] - The company expects to achieve revenue growth in the range of 13.5% to 15.1% for 2025, with non-GAAP earnings per share guidance increased to between $3.75 and $3.85 [34][35] - Management highlighted the importance of maintaining operational excellence while pursuing organic growth opportunities [72] Other Important Information - The company has been active in share repurchases, spending $40 million in Q3 2025, with a total of $256 million year-to-date [5][31] - Research and development expenses were $38.1 million, or 4.9% of sales, reflecting a decline due to synergy capture [27] - SG&A expenses included one-time litigation charges of $28.3 million, impacting the overall expense ratio [29] Q&A Session Summary Question: What is driving the strength and acceleration in U.S. Core Spine? - Management noted 32 weeks of consecutive sales growth, with broad strength across all categories, driven by competitive recruiting and new product launches [38][39] Question: What are the expectations for Nevro's margin progression? - Nevro's EBITDA margin was 16.2%, with plans to drive efficiency and growth through better product development and sales force integration [46][48] Question: How is the enabling tech business expected to perform in Q4? - Management expressed confidence in the pipeline, indicating potential for strong revenue generation despite recent slower sales [50][51] Question: What are the plans for Nevro's product portfolio? - Future developments may include expanding into peripheral nerve treatments and addressing conditions like diabetic neuropathy and Parkinson's tremors [55][56] Question: What is the strategy regarding flexible payment models? - The company is seeing an increase in requests for flexible capital acquisition models, which may affect revenue recognition timing [42][57]

Sales Performance - Total net sales for the three months ended September 30, 2025, were $769.0 million, an increase of $143.3 million or 22.9% compared to $625.7 million in the same period of 2024[159]. - Net sales in the United States increased by $121.8 million, or 24.6%, driven by Nevro sales of $83.3 million and Musculoskeletal Solutions and Neuromonitoring sales of $48.4 million[159]. - International net sales increased by $21.5 million, or 16.5%, primarily due to Nevro sales of $15.9 million and an increase in Musculoskeletal Solutions spine product sales of $6.0 million[160]. - Total net sales increased by $250.4 million, or 13.5%, to $2.1 billion for the nine months ended September 30, 2025, driven by a $224.1 million increase in U.S. sales[173]. - International net sales rose by $26.3 million, or 6.9%, for the nine months ended September 30, 2025, with significant contributions from the Europe and Middle East region[174]. Cost and Expenses - Cost of sales decreased by $18.0 million, or 6.6%, to $252.5 million, with the percentage of net sales dropping to 32.8% from 43.2%[162]. - Cost of sales decreased by $75.3 million, or 9.8%, to $696.7 million for the nine months ended September 30, 2025, resulting in a cost of sales percentage of 33.0%[175]. - Research and development expenses increased by $2.7 million, or 7.6%, to $38.1 million, representing 4.9% of net sales[163]. - Research and development expenses decreased by $19.3 million, or 14.8%, to $111.1 million for the nine months ended September 30, 2025, representing 5.3% of net sales[176]. - Selling, general and administrative expenses rose by $73.6 million, or 30.6%, to $313.6 million, accounting for 40.8% of net sales[164]. - Selling, general and administrative expenses increased by $131.8 million, or 18.1%, to $860.0 million for the nine months ended September 30, 2025, accounting for 40.7% of net sales[177]. - Acquisition-related costs surged by $18.9 million, or 151.3%, to $31.5 million for the nine months ended September 30, 2025, primarily due to costs associated with the Nevro Merger[179]. - Restructuring costs decreased by $9.9 million, or 41.5%, to $13.9 million for the nine months ended September 30, 2025, representing 0.7% of net sales[180]. Income and Tax - A bargain purchase gain of $3.8 million was recorded due to adjustments related to the Nevro Merger, representing 0.5% of net sales[168]. - The company reported a bargain purchase gain of $114.4 million for the nine months ended September 30, 2025, attributed to the Nevro Merger[181]. - The income tax provision increased by $19.8 million, or 381.7%, to $25.0 million for the three months ended September 30, 2025, with an effective tax rate of 17.4%[170]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $504.86 million, an increase of $194.56 million compared to $310.30 million in 2024[187]. - Cash used in investing activities increased by $171.64 million, primarily due to acquisition-related costs of $234.9 million[189]. - Net cash used in financing activities was $692.38 million, largely due to the repayment of senior convertible notes amounting to $450 million[190]. - The company reported a net income increase of $320.8 million, contributing to higher cash from operating activities[188]. - The effect of foreign exchange rate changes on cash was an increase of $18.41 million for the nine months ended September 30, 2025[187]. - The company experienced a decrease in cash and cash equivalents of $412.67 million for the nine months ended September 30, 2025[187]. - The company has no outstanding borrowings under the September 2023 Credit Agreement as of September 30, 2025[186]. - The company is subject to financial covenants, including a funded net indebtedness to adjusted EBITDA ratio[186]. Mergers and Acquisitions - The Nevro Merger was completed on April 3, 2025, with Nevro's common stock converted into cash at $5.85 per share[150]. - The company entered into a revolving credit facility of up to $400 million with a termination date of September 27, 2028[186]. - The company acquired additional obligations and commitments related to the NuVasive and Nevro mergers, including contingent consideration arrangements and senior convertible notes[192]. - International net sales accounted for approximately 19.4% of total net sales during the nine months ended September 30, 2025[155]. - The company plans to expand its U.S. sales force to strengthen its market position[154].