Globus Medical (NYSE:GMED) Releases Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Globus Medical reported quarterly earnings of $0.86 per share, exceeding analyst estimates of $0.76 by $0.10, and had a revenue of $745.34 million, up 18.4% year-over-year.
• The company's stock rose 8.8% following the earnings announcement, with trading volumes significantly above average.
• A share buyback plan has been authorized, allowing the company to repurchase up to $500 million in shares, indicating management's belief in the stock's undervaluation.

Globus Medical (NYSE:GMED - Get Free Report) announced its quarterly earnings data on Thursday. The medical device company reported $0.86 earnings per share for the quarter, topping analysts' consensus estimates of $0.76 by $0.10, Zacks reports. The firm had revenue of $745.34 million for the quarter, compared to analyst estimates of $738.91 million. Globus Medical had a return on equity of 10.77% and a net margin of 13.58%. Globus Medical's quarterly revenue was up 18.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.75 earnings per share.

Globus Medical Stock Up 8.8%

NYSE GMED traded up $4.77 during trading hours on Friday, hitting $58.84. The company had a trading volume of 3,664,879 shares, compared to its average volume of 1,518,244. Globus Medical has a fifty-two week low of $51.79 and a fifty-two week high of $94.93. The business has a fifty day simple moving average of $57.08 and a 200-day simple moving average of $68.43. The firm has a market cap of $7.97 billion, a P/E ratio of 22.63, a price-to-earnings-growth ratio of 1.71 and a beta of 1.20.

Wall Street Analysts Forecast Growth

GMED has been the subject of several research analyst reports. Morgan Stanley cut their price objective on Globus Medical from $75.00 to $68.00 and set an "overweight" rating for the company in a research report on Tuesday, July 15th. Wall Street Zen raised Globus Medical from a "hold" rating to a "buy" rating in a report on Saturday. Needham & Company LLC reissued a "hold" rating on shares of Globus Medical in a report on Monday, July 21st. Barclays reissued an "overweight" rating on shares of Globus Medical in a report on Tuesday, June 10th. Finally, Canaccord Genuity Group lowered their target price on Globus Medical from $97.00 to $90.00 and set a "buy" rating on the stock in a report on Tuesday, July 22nd. Five research analysts have rated the stock with a hold rating and nine have given a buy rating to the company's stock. According to data from MarketBeat, Globus Medical presently has a consensus rating of "Moderate Buy" and a consensus price target of $87.64.

Globus Medical announced that its Board of Directors has authorized a share buyback plan on Thursday, May 15th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the medical device company to purchase up to 6.3% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Globus Medical by 8.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 347,527 shares of the medical device company's stock worth $25,439,000 after purchasing an additional 28,027 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Globus Medical by 38.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,649 shares of the medical device company's stock valued at $2,228,000 after buying an additional 8,540 shares during the last quarter. AQR Capital Management LLC grew its holdings in Globus Medical by 45.9% in the 1st quarter. AQR Capital Management LLC now owns 22,510 shares of the medical device company's stock valued at $1,622,000 after buying an additional 7,086 shares during the last quarter. Integrated Wealth Concepts LLC grew its holdings in shares of Globus Medical by 33.0% during the 1st quarter. Integrated Wealth Concepts LLC now owns 4,375 shares of the medical device company's stock worth $320,000 after purchasing an additional 1,085 shares in the last quarter. Finally, Jones Financial Companies Lllp grew its holdings in shares of Globus Medical by 237.3% during the 1st quarter. Jones Financial Companies Lllp now owns 850 shares of the medical device company's stock worth $62,000 after purchasing an additional 598 shares in the last quarter. Institutional investors own 95.16% of the company's stock.

Globus Medical Company Profile

Globus Medical, Inc, a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. The company offers spine products, such as traditional fusion implants comprising pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative and congenital conditions, deformity, tumors, and trauma injuries; treatment options for motion preservation technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional solutions to treat vertebral compression fractures; and regenerative biologic products comprising of allografts and synthetic alternatives.

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