We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Globus Medical (GMED) Q3 Earnings Top Estimates, Revenues Lag
Read MoreHide Full Article
Globus Medical, Inc. (GMED - Free Report) reported third-quarter 2021 adjusted earnings per share (EPS) of 50 cents, beating the Zacks Consensus Estimate by 11.1%. The metric exceeded the year-ago adjusted figure by a penny.
The adjusted EPS excludes certain non-recurring expenses like amortization of intangibles and acquisition-related costs.
Without the adjustments, the company registered GAAP EPS of 45 cents per share, one cent up from the year-ago comparable figure.
Revenues
Third-quarter 2021 worldwide sales totaled $229.7 million, up 6.3% year over year. The reported figure however missed the Zacks Consensus Estimate by a marginal 0.02%.
Quarterly Details
Sales generated in the United States during the quarter under review improved 8.8% year over year at CER to $198.2 million. According to Globus Medical, the U.S. Spine business continued to show impressive gains. Internationally, revenues were $31.5 million, down 7.6% year over year at CER. The quarter registered lower robotic sales. The international spine business performance was varied by region, demonstrating strong year-over-year growth in countries, including the U.K., Spain and Belgium.
Globus Medical, Inc. Price, Consensus and EPS Surprise
Musculoskeletal Solutions products generated revenues of $209.5 million, up 1.2% year over year. Enabling Technologies product revenues of $20.2 million in the quarter reflected a 124.1% surge from the prior-year figure.
Margin
Gross profit in the reported quarter rose 7.7% year over year to $171.2 million. Gross margin expanded 93 basis points (bps) to 74.5% despite a 2.6% rise in the cost of goods sold to $58.6 million.
Selling, general and administrative expenses in the reported quarter were $96.4 million, up 8.2% from the year-ago quarter. Research and development expenses rose 9.9% to $15.8 million.
Overall adjusted operating profit was $58.8 million, reflecting a 6.2% improvement from the year-ago quarter. The operating margin dropped 2 basis points in the quarter to 25.6%.
Cash Position
Globus Medical exited the third quarter of 2021 with cash and cash equivalents, and short-term marketable securities of $553.2 million compared with $460.4 million at the end of the second quarter of 2021.
Cumulative net cash provided by operating activities at the end of third-quarter 2021 was $200 million compared with the year-ago figure of $118.6 million.
2021 Guidance
The company reaffirmed its full-year 2021 guidance.
Full-year net sales are projected to be $950 million. The Zacks Consensus Estimate for the same is currently pegged at $954.4 million.
The company’s adjusted EPS guidance for 2021 was reiterated at $2.00. The Zacks Consensus Estimate for the same is also pegged at $2.00 currently.
Our Take
Globus Medical exited the third quarter of 2021 with better-than-expected earnings. However, revenues missed the mark owing to pandemic-related adversities. According to the company, these results reflect an estimated $12 million to $13 million in correlated revenue headwinds in the United States during the quarter. Taking this into account, revenue growth was 12% year over year, the company stated.
On a positive note, the Enabling Technologies business was strong. The company noted that, the third quarter is typically challenging for capital sales. Despite that, the company delivered the fourth straight quarter of robust growth within this business.
Zacks Rank and Key Picks
Globus Medical currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Omnicell, Inc. (OMCL - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
Thermo Fisher, carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Revenues of $9.33 billion outpaced the consensus mark by 12%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicell reported third-quarter 2021 adjusted EPS of $1.08, surpassing the Zacks Consensus Estimate by 18.7%. Revenues of $296.5 million surpassed the Zacks Consensus Estimate by 4.4%. It currently carries a Zacks Rank #2 (Buy).
West Pharmaceutical reported third-quarter 2021 adjusted EPS of $2.06, which surpassed the Zacks Consensus Estimate by 13.2%. Revenues of $706.5 million outpaced the Zacks Consensus Estimate by 3.2%. It currently carries a Zacks Rank #2.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Globus Medical (GMED) Q3 Earnings Top Estimates, Revenues Lag
Globus Medical, Inc. (GMED - Free Report) reported third-quarter 2021 adjusted earnings per share (EPS) of 50 cents, beating the Zacks Consensus Estimate by 11.1%. The metric exceeded the year-ago adjusted figure by a penny.
The adjusted EPS excludes certain non-recurring expenses like amortization of intangibles and acquisition-related costs.
Without the adjustments, the company registered GAAP EPS of 45 cents per share, one cent up from the year-ago comparable figure.
Revenues
Third-quarter 2021 worldwide sales totaled $229.7 million, up 6.3% year over year. The reported figure however missed the Zacks Consensus Estimate by a marginal 0.02%.
Quarterly Details
Sales generated in the United States during the quarter under review improved 8.8% year over year at CER to $198.2 million. According to Globus Medical, the U.S. Spine business continued to show impressive gains. Internationally, revenues were $31.5 million, down 7.6% year over year at CER. The quarter registered lower robotic sales. The international spine business performance was varied by region, demonstrating strong year-over-year growth in countries, including the U.K., Spain and Belgium.
Globus Medical, Inc. Price, Consensus and EPS Surprise
Globus Medical, Inc. price-consensus-eps-surprise-chart | Globus Medical, Inc. Quote
Musculoskeletal Solutions products generated revenues of $209.5 million, up 1.2% year over year. Enabling Technologies product revenues of $20.2 million in the quarter reflected a 124.1% surge from the prior-year figure.
Margin
Gross profit in the reported quarter rose 7.7% year over year to $171.2 million. Gross margin expanded 93 basis points (bps) to 74.5% despite a 2.6% rise in the cost of goods sold to $58.6 million.
Selling, general and administrative expenses in the reported quarter were $96.4 million, up 8.2% from the year-ago quarter. Research and development expenses rose 9.9% to $15.8 million.
Overall adjusted operating profit was $58.8 million, reflecting a 6.2% improvement from the year-ago quarter. The operating margin dropped 2 basis points in the quarter to 25.6%.
Cash Position
Globus Medical exited the third quarter of 2021 with cash and cash equivalents, and short-term marketable securities of $553.2 million compared with $460.4 million at the end of the second quarter of 2021.
Cumulative net cash provided by operating activities at the end of third-quarter 2021 was $200 million compared with the year-ago figure of $118.6 million.
2021 Guidance
The company reaffirmed its full-year 2021 guidance.
Full-year net sales are projected to be $950 million. The Zacks Consensus Estimate for the same is currently pegged at $954.4 million.
The company’s adjusted EPS guidance for 2021 was reiterated at $2.00. The Zacks Consensus Estimate for the same is also pegged at $2.00 currently.
Our Take
Globus Medical exited the third quarter of 2021 with better-than-expected earnings. However, revenues missed the mark owing to pandemic-related adversities. According to the company, these results reflect an estimated $12 million to $13 million in correlated revenue headwinds in the United States during the quarter. Taking this into account, revenue growth was 12% year over year, the company stated.
On a positive note, the Enabling Technologies business was strong. The company noted that, the third quarter is typically challenging for capital sales. Despite that, the company delivered the fourth straight quarter of robust growth within this business.
Zacks Rank and Key Picks
Globus Medical currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Omnicell, Inc. (OMCL - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
Thermo Fisher, carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Revenues of $9.33 billion outpaced the consensus mark by 12%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicell reported third-quarter 2021 adjusted EPS of $1.08, surpassing the Zacks Consensus Estimate by 18.7%. Revenues of $296.5 million surpassed the Zacks Consensus Estimate by 4.4%. It currently carries a Zacks Rank #2 (Buy).
West Pharmaceutical reported third-quarter 2021 adjusted EPS of $2.06, which surpassed the Zacks Consensus Estimate by 13.2%. Revenues of $706.5 million outpaced the Zacks Consensus Estimate by 3.2%. It currently carries a Zacks Rank #2.