Back to top

Image: Bigstock

Globus Medical Stock Up on Solid '19 Preliminary Results

Read MoreHide Full Article

Globus Medical, Inc. GMED reported strong preliminary results for the fourth quarter of 2019 as well as the full year. It also issued guidance for 2020. The stock inched up 0.7% on Jan 8 following this announcement.

Shares of Globus Medical have rallied 36.5% in the past year compared with the industry’s increase of 14.4%.

Q4 & 2019 Preliminary Release

The company expects to report fourth-quarter sales of approximately $211.0 million, indicating a 7.7% improvement from the year-ago reported figure. The current Zacks Consensus Estimate of $209.66 million remains 0.6% below the projected figure.

For the fourth quarter, Enabling Technologies is likely to deliver $13.6 million in revenues while Musculoskeletal Solutions is anticipated to grow approximately 8.7%. U.S. growth is estimated to be approximately 8.1% while International growth is expected to be nearly 5.5%.

For the full year, sales are expected to be roughly $784.7 million, suggesting a 10.1% rise from the prior-year reported number. The Zacks Consensus Estimate of $784.4 million stays slightly below the company’s preliminary sales figure.

Per the company, the fourth quarter marked the third consecutive quarter of registering strong revenues from Enabling Technologies. Musculoskeletal Solutions too completed an outstanding year, growing 11%. This is on the back of strength across all sectors, driven by a record competitive recruiting and an implant pull through from robotics.

2020 Outlook

While announcing the preliminary results, Globus Medical also provided its 2020 projections. The company expects to report full-year adjusted earnings of $1.82 on $850 million of sales. The Zacks Consensus Estimate for 2020 EPS stands at $1.91 on $855.5 million of sales.

According to the company, while exiting 2019, its robotic pipeline seemed hugely strong and competitive recruiting was accelerating. The company also envisions several significant product introductions in both Musculoskeletal Solutions and Enabling Technologies.

Zacks Rank & Other Key Picks

Globus Medical currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , Medtronic plc MDT and Hill-Rom Holdings, Inc HRC.

Haemonetics currently has a Zacks Rank #1 (Strong Buy) and a projected long-term earnings growth rate of 13.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medtronic’s long-term earnings growth rate is estimated at 7.4%. The company currently carries a Zacks Rank of 2.

Hill-Rom’s long-term earnings growth rate is estimated at 11.7%. It is currently Zacks #2 Ranked.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.

This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.

See their latest picks free >>

Go Deeper With Exclusive Zacks Research

Normally $25 each - click below to receive one report FREE:

Haemonetics Corporation (HAE) - free report >>