AUDUBON, Pa. - Globus Medical , Inc. (NYSE:GMED), a leading musculoskeletal solutions company, reported a significant increase in its first-quarter revenue and surpassed analyst estimates for earnings per share (EPS). The company's stock soared by 7% following the announcement, buoyed by a robust "beat and raise" performance.
For the quarter ended March 31, 2024, Globus Medical announced a substantial 119.3% increase in worldwide net sales to $606.7 million, compared to the same period last year. This growth was bolstered by the acquisition of NuVasive (NASDAQ:NUVA) and a rise in spine product sales and enabling technology products and services. The company's revenue not only exceeded the analyst consensus of $585.75 million but also marked a significant YoY improvement.
Despite a GAAP net loss of $7.1 million, which was primarily attributed to amortization and restructuring costs related to the NuVasive merger, the company's adjusted EPS stood at $0.72. This figure represents a 36.4% increase from the $0.53 reported in the first quarter of 2023, and it beats the analyst estimate by $0.15.
President and CEO Dan Scavilla highlighted the company's rapid progress post-merger, noting the positive response from surgeons and hospitals to their product offerings. "We are now one company with one galvanizing mission of being the most innovative musculoskeletal technology company in the world," Scavilla said.
Looking ahead, Globus Medical updated its full-year 2024 revenue guidance to a range of $2.460 to $2.485 billion, up from the previous forecast of $2.450 to $2.475 billion. The adjusted EPS guidance for 2024 was also raised to a range of $2.75 to $2.85, surpassing the consensus estimate of $2.69.
The company's optimistic guidance reflects the successful integration of NuVasive and the realization of early-stage visions, according to Keith Pfeil, COO-CFO. "We continue to be well positioned in delivering against our commitments for the year," Pfeil commented.
Investors reacted positively to the news, with the stock price jumping 7%, indicating confidence in the company's growth trajectory and future prospects.
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