Globus Medical, Inc. (GMED - Free Report) reported first-quarter 2019 adjusted earnings per share (EPS) of 36 cents, missing both the Zacks Consensus Estimate and the year-ago figure by 12.2%.
On a reported basis, the company registered earnings of 33 cents per share, translating to a 15.4% decline from the year-ago quarter.
First-quarter 2019 worldwide sales summed $182.9 billion, up 4.9% (up 5.7% at constant exchange rate or CER) year over year. The figure, however, lagged the Zacks Consensus Estimate of $186 million. Also, net sales totaled $713 million in the period, up 12.1% year over year.
During the quarter under review, sales generated in the United States including robotic inched up 1.3% year over year. Quarterly seasonality and longer sales cycles dampened robotic sales in the reported period.
International sales rose 23% from the year-earlier quarter (up 27.9% at CER).
Musculoskeletal solutions products generated revenues of $175.8 million, up 8.7% year over year. Enabling Technologies products revenues were $7.2 million in the quarter, representing a 44% decline from the prior-year period.
Globus Medical exited the first quarter with cash and cash equivalents and short-term marketable securities of $320.7 million compared with $339.8 million in 2018. For the first quarter, net cash provided by the operating activities was $39.2 million compared with $52.3 million a year ago.
The company reaffirmed its 2019 revenue and adjusted EPS guidance as follows:
Sales in 2019 are still projected to be $770 million. The Zacks Consensus Estimate for revenues is pegged at $769.8 million.
Adjusted EPS for 2019 is once again expected at $1.72. The Zacks Consensus Estimate for the metric is currently stands at $1.71 per share.
Globus Medical suffered a dismal first-quarter performance with both earnings and revenues falling short of the respective Zacks Consensus Estimate. Per the company, the first quarter of the year is typically challenging seasonwise for capital equipment, which grossly impacted sales during the quarter. On a positive note, US spine business grew 6%, significantly above the overall market.
Zacks Rank & Other Key Picks
Globus Medical carries a Zacks Rank #2 (Buy). Some other top-ranked stocks boasting solid results this reporting cycle are Stryker Corporation (SYK - Free Report) , Abbott Laboratories (ABT - Free Report) and CONMED Corporation (CNMD - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Meanwhile, revenues of $3.52 billion matched the Zacks Consensus Estimate.
Abbott reported first-quarter 2019 adjusted EPS of 63 cents, topping the Zacks Consensus Estimate by 3.3%. Further, first-quarter worldwide sales came in at $7.54 billion, higher than the consensus estimate of $7.47 billion.
CONMED posted first-quarter 2019 adjusted EPS of 57 cents, exceeding the Zacks Consensus Estimate of 54 cents. Revenues also summed $218.4 million, outpacing the consensus mark of $213 million.
(We are reissuing this article to correct a mistake. The original article, issued on May 3, 2019, should no longer be relied upon.)