Globus Medical (NYSE:GMED) reported second-quarter results that beat the overall consensus on Wall Street.
The Audubon, Pennsylvania-based musculoskeletal device company reported profits of $54.6 million, or 53¢ per share, on sales of $263.6 million for the three months ended June 30, for a bottom-line gain of 31.4% on sales growth of 5.03% compared with Q2 2021.
Adjusted to exclude one-time items, earnings per share were 56¢, 3¢ ahead of The Street, where analysts were looking for sales of $259.39 million.
“Our second quarter record sales grew 6.5% on a constant currency basis and accelerated from last quarter as we continue to make market share gains, despite headwinds of a difficult prior year comparative and unfavorable foreign currency fluctuations,” President and CEO Dan Scavilla said in a news release.
“Our Enabling Technologies business had a record-breaking quarter, increasing 41.7% to $29.4 million, driven by strong robotic systems demand, as well as the initial roll-out of our highly anticipated Excelsius3D imaging system. Globus Medical continues to be the innovative leader in helping patients with musculoskeletal disorders.”
Globus Medical reaffirmed its full-year 2022 guidance of $1.025 billion in net sales and non-GAAP EPS of $2.10.
The results delivered on a needed rebound for Globus Medical after a Q1 earnings miss and a surprise CEO transition, said BTIG analyst Ryan Zimmerman as he kept his Buy rating on GMED shares. “To some extent, investors are flying blind in terms of where GMED is heading longer-term strategically (and how it reaccelerates core spine), but at the same time, we expect GMED to drive growth through competitive rep hires, pull through from Enabling Technology, and new product introductions; all of which are expected to pick-up as we move into FY23.”
Shares in GMED were up more than 5% at $62.19 apiece in morning trading. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down slightly.