Globus Medical Inc. (GMED - Free Report) reported third-quarter 2017 earnings of 30 cents per share, in line with the Zacks Consensus Estimate. Earnings improved from the year-ago figure by a penny.
The upside was driven by roughly 11.9% growth in revenues, which totaled $151.7 million. Revenues also beat the Zacks Consensus Estimate of $151.0 million.
Q3 Details
In the reported quarter, sales in the United States increased 4.5% year over year to $125.9 million. The rise can be attributed to structural improvements. International sales increased 70.1% year over year to $25.8 million on continued market penetration in Japan, gains in key distributor markets and improved momentum in the core international business.
Research and development expenses were $10.9 million, up from $10.3 million in the year-ago quarter. Selling, general and administrative expenses were $63.4 million, up from $54.2 million in the comparable quarter of 2016. This was due to the inclusion of pre-revenue robotics and trauma commercial organization builds and increased investments in the domestic sales force.
Financial Update
Total cash and cash equivalents increased to $154.9 million as of Sep 30, 2017, from $132.6 million as of Dec 31, 2016. Cash generated from operations in the first nine months of 2017 was $114.7 million compared with $121.5 million in the year-ago period.
Guidance
The company reaffirmed its guidance for fiscal 2017 sales at $625 million and adjusted earnings at $1.27.
Zacks Rank & Key Picks
Globus Medical currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the broader medical sector are PetMed Express, Inc. (PETS - Free Report) , Luminex Corporation and Intuitive Surgical, Inc. (ISRG - Free Report) . PetMed and Luminex sport a Zacks Rank #1 (Strong Buy), while Intuitive Surgical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed reported earnings per share of 43 cents in the second quarter of fiscal 2018, up 79.2% from the year-ago quarter’s 24 cents. Also, gross margin expanded 548 basis points year over year to 35.2% in the reported quarter.
Luminex reported adjusted earnings per share of 19 cents in the third quarter of 2017, up 216.7% year over year. Revenues increased almost 4.1% year over year to $74.1 million.
Intuitive Surgical posted adjusted earnings of $2.77 per share in the third quarter of 2017, up 34.5% year over year. Revenues rose 18% year over year to $806.1 million.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Globus Medical Inc. (GMED - Free Report) reported third-quarter 2017 earnings of 30 cents per share, in line with the Zacks Consensus Estimate. Earnings improved from the year-ago figure by a penny.
The upside was driven by roughly 11.9% growth in revenues, which totaled $151.7 million. Revenues also beat the Zacks Consensus Estimate of $151.0 million.
Q3 Details
In the reported quarter, sales in the United States increased 4.5% year over year to $125.9 million. The rise can be attributed to structural improvements. International sales increased 70.1% year over year to $25.8 million on continued market penetration in Japan, gains in key distributor markets and improved momentum in the core international business.
Research and development expenses were $10.9 million, up from $10.3 million in the year-ago quarter. Selling, general and administrative expenses were $63.4 million, up from $54.2 million in the comparable quarter of 2016. This was due to the inclusion of pre-revenue robotics and trauma commercial organization builds and increased investments in the domestic sales force.
Financial Update
Total cash and cash equivalents increased to $154.9 million as of Sep 30, 2017, from $132.6 million as of Dec 31, 2016. Cash generated from operations in the first nine months of 2017 was $114.7 million compared with $121.5 million in the year-ago period.
Guidance
The company reaffirmed its guidance for fiscal 2017 sales at $625 million and adjusted earnings at $1.27.
Zacks Rank & Key Picks
Globus Medical currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the broader medical sector are PetMed Express, Inc. (PETS - Free Report) , Luminex Corporation and Intuitive Surgical, Inc. (ISRG - Free Report) . PetMed and Luminex sport a Zacks Rank #1 (Strong Buy), while Intuitive Surgical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed reported earnings per share of 43 cents in the second quarter of fiscal 2018, up 79.2% from the year-ago quarter’s 24 cents. Also, gross margin expanded 548 basis points year over year to 35.2% in the reported quarter.
Luminex reported adjusted earnings per share of 19 cents in the third quarter of 2017, up 216.7% year over year. Revenues increased almost 4.1% year over year to $74.1 million.
Intuitive Surgical posted adjusted earnings of $2.77 per share in the third quarter of 2017, up 34.5% year over year. Revenues rose 18% year over year to $806.1 million.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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