Globus Medical Q4 Earnings & Revenues Top, Margins Expand, Stock Dips

Core Viewpoint - Globus Medical, Inc. reported strong fourth-quarter 2024 results with adjusted earnings per share (EPS) of 84 cents, exceeding estimates and showing a 40% year-over-year increase [1][3] Financial Performance - The adjusted EPS for the full year was $3.04, a 31% increase from the previous year, surpassing estimates by 2% [3] - Total revenues for the full year reached $2.52 billion, reflecting a 60.6% increase year-over-year, exceeding estimates by 0.8% [4] - Worldwide sales increased by 6.6% year-over-year to $657.3 million, also surpassing estimates by 2% [3] Geographic Sales Breakdown - U.S. net sales increased by 6.3% year-over-year to $521.9 million, exceeding projections [5] - International revenues rose by 7.7% to $135.4 million, also surpassing estimates [5] Product Performance - Musculoskeletal Solutions generated revenues of $610.3 million, up 4.5% year-over-year, exceeding model projections [6] - Enabling Technologies saw revenues of $46.9 million, a significant 43.5% increase from the prior year, also surpassing estimates [6] Margin and Expense Analysis - Gross profit rose by 12.2% year-over-year to $393.9 million, with gross margin expanding to 60% [7] - SG&A expenses totaled $253.5 million, up 3.6% from the previous year, while R&D expenses decreased by 36.1% to $33.4 million [7] Cash Position - The company ended Q4 2024 with cash and cash equivalents of $890.1 million, up from $517.8 million at the end of 2023 [9] - Cumulative net cash from operating activities was $520.6 million, compared to $243.5 million the previous year [10] Future Guidance - For 2025, revenues are projected between $2.66 billion and $2.69 billion, with adjusted EPS expected in the range of $3.40 to $3.50 [11] - Following the acquisition of Nevro Corp. for $250 million, the company anticipates net sales of $2.80 billion to $2.90 billion and adjusted EPS of $3.10 to $3.40 for the full year [12] Overall Assessment - The performance indicates strong potential for the combined Globus-NuVasive organization, with record sales in Enabling Technologies and the introduction of five new innovative products [13]