Globus Medical(US:GMED) ZACKSยท2025-05-12 12:26Core Viewpoint - Globus Medical, Inc. reported disappointing first-quarter 2025 results, with both adjusted earnings per share (EPS) and revenues missing estimates, primarily due to lower sales in enabling technologies and supply chain disruptions [11][12]. Financial Performance - Adjusted EPS for Q1 2025 was 68 cents, missing the Zacks Consensus Estimate by 8.1%, but showing a year-over-year increase of 7.9% [1] - GAAP diluted EPS was 54 cents, a significant improvement from a loss of 5 cents per share in the same period last year [2] - Revenues decreased by 1.4% year over year to $598.1 million, missing the Zacks Consensus Estimate by 4.8% [3] Geographic Performance - U.S. net sales increased by 0.2% year over year to $483.9 million, falling short of the projected $519.2 million [4] - International revenues decreased by 7.7% to $114.3 million, also missing the estimate of $124.6 million [4] Product Performance - Musculoskeletal Solutions generated revenues of $575.9 million, up 0.2% year over year, but below the projected $597.1 million [5] - Enabling Technologies saw a significant decline in revenues, down 30.6% to $22.2 million, missing the estimate of $46.7 million [5] Margin Analysis - Gross profit rose by 10.3% year over year to $402.7 million, with gross margin expanding by 714 basis points to 67.3% due to a 19.1% decrease in the cost of sales [6] - Adjusted operating profit was $126.9 million, up 114.2% from the previous year, with an adjusted operating margin of 21.2%, an increase of 1145 basis points [7] Cash Position - The company ended Q1 2025 with cash and cash equivalents totaling $461.3 million, down from $890.1 million at the end of Q4 2024 [8] - Net cash provided by operating activities was $177.3 million, compared to $52.4 million in the prior year [9] Guidance - The company reaffirmed its full-year 2025 net sales guidance of $2.80-$2.90 billion, while lowering its adjusted EPS guidance to $3.00-$3.30 from $3.10-$3.40 [10]