Here's What Stimulated Global Medical's Third-Quarter Blowout

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].