Globus Medical, Inc. (GMED - Free Report) reported second-quarter 2019 adjusted earnings per share (EPS) of 41 cents, in line with the Zacks Consensus Estimate. Meanwhile, the metric missed the year-ago figure by 6.8%.
On a reported basis, the company registered earnings of 38 cents per share, reflecting a 13.6% decline from the year-ago quarter.
Second-quarter 2019 worldwide sales summed $194.5 million, up 12.2% (up 12.7% at constant exchange rate or CER) year over year. The figure also exceeded the Zacks Consensus Estimate by 5.9%.
During the quarter under review, sales generated in the United States including robotic improved 10% year over year. However, quarterly seasonality and longer sales cycles partially dampened robotic sales in the reported period.
Meanwhile, international sales rose 23.3% from the year-earlier quarter (up 26.7% at CER).
Moreover, musculoskeletal solutions products generated revenues of $182.5 million, up 14.3% year over year. However, Enabling Technologies products revenues of $12 million in the quarter represented a 12.7% decline from the prior-year period.
Globus Medical exited the second quarter with cash and cash equivalents and short-term marketable securities of $240.4 million compared with $320.7 million at the end of the first quarter. Year to date, net cash provided by the operating activities was $61.8 million compared with $85.6 million a year ago.
2019 Guidance Updated
The company reaffirmed its 2019 adjusted EPS guidance at $1.72, matching the current Zacks Consensus Estimate for the metric.
However, 2019 sales guidance has been raised to $775 million from $770 million predicted earlier. The Zacks Consensus Estimate for revenues is pegged at $767.5 million, lower than the company’s projection.
Globus Medical posted a mixed second-quarter performance with earnings meeting the Zacks Consensus Estimate while revenues beating the mark. Enabling Technologies registered strong sequential growth. Also, global spine business demonstrated a strong year-over-year improvement. An upped sales outlook for 2019 is indicative of this bullish trend to continue through the remaining year.
Zacks Rank & Key Picks
Globus Medical carries a Zacks Rank #4 (Sell).
Some better-ranked stocks having reported solid results this earnings season are Stryker Corporation (SYK - Free Report) , Baxter International Inc. (BAX - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Stryker delivered second-quarter 2019 adjusted earnings per share of $1.98, topping the Zacks Consensus Estimate by 2.6%. Further, revenues of $3.65 billion surpassed the Zacks Consensus Estimate by 1.4%. The company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Baxter delivered second-quarter 2019 adjusted earnings of 89 cents per share, which surpassed the Zacks Consensus Estimate of 81 cents by 9.9%. Additionally, revenues of $2.84 billion outpaced the Zacks Consensus Estimate of $2.79 billion by 1.9%. The company has a Zacks Rank of 2.
Intuitive Surgical reported second-quarter 2019 adjusted earnings per share of $3.25, which exceeded the Zacks Consensus Estimate of $2.85. Also, revenues of $1.1 billion came ahead of the Zacks Consensus Estimate of $1.03 billion. The company sports a Zacks Rank #1.
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