Globus Medical, Inc. ( GMED Quick Quote GMED - Free Report) reported preliminary sales results for the first quarter of 2022, lagging the Zacks Consensus Estimate by 1.6%. The stock fell 12.7% on Apr 21 after-hours following this announcement.
It also provided an update on guidance for 2022. In addition to this announcement, Globus Medical named Daniel T. Scavilla as the company’s new President and Chief Executive Officer, effective immediately.
The company is slated to report first-quarter 2022 results on May 10, following the market close.
Q1 Preliminary Result
Globus Medical anticipates first-quarter 2022 sales of nearly $230.5 million, suggesting an increase of 1.4% over the first quarter of 2021. The Zacks Consensus Estimate for the same is pegged at $234.30 million.
Per management, year-over-year growth against stiff competition, lingering COVID-19 impacts and softer capital purchasing during the first quarter are impressive. Management also noted that as the company progressed through March and entered April, procedural volumes continued to increase along with growth in the Enabling Technologies business.
2022 Annual Guidance
Globus Medical reaffirmed its full-year 2022 guidance.
Full-year net sales are projected at $1.03 billion. The Zacks Consensus Estimate for the same is currently pegged at $1.03 billion.
Image Source: Zacks Investment Research
The company’s adjusted EPS guidance for 2022 is projected a$t 2.10. The Zacks Consensus Estimate for the same is pegged at $2.10 currently.
Industry Prospects Impressive
The world's demography is growing and aging. This population is more prone to musculoskeletal degeneration, traumatic fractures and challenging complications. Per Transparency Market Research, with a substantial increase in the prevalence of musculoskeletal disorders across the world, the global musculoskeletal diseases market has been witnessing a tremendous rise in size as well as valuation.
Per a report by Research and Markets, the global musculoskeletal diseases market was valued at $57.4 billion in 2017 and is estimated see a CAGR of more than 5.5% by 2023. Progress in Globus Medical Business
Globus Medical continues to rein in surging demand for its Musculoskeletal Solutions products. Meanwhile, the company is expanding in the overseas markets through the expansion of its direct and distributors sales force.
During the last-reported fourth quarter, the company’s Musculoskeletal Solutions registered strong growth, led by the U.S. Spine business. Further, the clinical superiority of ExcelsiusGPS continues to be the primary factor driving the company’s Enabling Technology business. The company’s international business was strong, led by growth in spinal implants. Globus Medical’s spinal implant business continues to experience the growing momentum of an increasing number of robots being sold combined with the increasing utilization of each robot.
Shares of the company have gained 11.1% in a year against the
industry's fall of 7.3%. Zacks Rank and Key Picks
Globus Medical currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks from the broader medical space that investors can consider are
AMN Healthcare Services, Inc. ( AMN Quick Quote AMN - Free Report) , STERIS plc ( STE Quick Quote STE - Free Report) and Abiomed, Inc. ( ABMD Quick Quote ABMD - Free Report) .
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN Healthcare’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 20%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 36.2% against the industry’s 59.9% fall over the past year.
STERIS, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 11.3%. STERIS’ earnings surpassed estimates in three of the trailing four quarters, the average surprise being 6.34%.
STERIS has gained 15.4% against the industry’s 7.3% fall over the past year.
Abiomed surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.2%. Abiomed currently carries a Zacks Rank #2.
Abiomed’s long-term earnings growth rate is estimated at 20%. ABMD’s earnings yield of 1.5% compares favorably against the industry’s (6.4%).