Globus Medical sees FYT adj EPS $3.00 to $3.30, est. $3.15

Globus Medical sees FYT adj EPS $3.00 to $3.30, est. $3.15

Globus Medical, Inc. (NYSE: GMED) has revised its full-year adjusted earnings per share (EPS) guidance for fiscal year 2025. The company now expects EPS to range between $3.00 and $3.30, down from the previously estimated $3.10 to $3.40 [2]. This adjustment follows the company's first-quarter 2025 earnings report, which showed a 1.4% year-over-year decrease in worldwide net sales to $598.1 million [2].

Despite the weaker-than-expected Q1 results, Globus Medical maintained its full-year revenue guidance of $2.80 to $2.90 billion. The company attributed the first-quarter decline to softer Enabling Technology sales, temporary supply chain disruptions, and delayed international orders [2]. However, the US spine business remained strong, offsetting some of the decline.

Analysts remain bullish on the company's prospects. Piper Sandler analyst Matthew O’Brien maintained a Buy rating on Globus Medical with a price target of $80, despite the company's recent financial performance [1]. The analyst noted that the company's US sales were steady, and the main reasons for weaker sales were fewer enabling technology deals and supply chain issues.

Globus Medical's latest product launches, such as the DuraPro™ Oscillating System and the COHERE™ ALIF Spacer, aim to enhance surgical precision and patient outcomes [2]. These innovations are part of the company's broader strategy to expand its portfolio of enabling technologies.

The company also announced a significant share repurchase program worth $500 million to address the disconnect between its intrinsic value and current market valuation [2]. The repurchase program will be funded through cash reserves and has no time limit.

Globus Medical is expected to discuss these developments during its first-quarter earnings conference call on May 8, 2025, after market close [2].

References:
[1] https://finance.yahoo.com/news/piper-sandler-maintained-buy-rating-143844171.html
[2] https://www.stocktitan.net/news/GMED/