Globus Medical Earnings: Here’s Why Investors are Ambivalent Now

Globus Medical Inc (NYSE:GMED) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Globus Medical Inc Earnings Cheat Sheet

Results:

Revenue: Rose 11.48% to $107 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.2. It missed the average revenue estimate of $107.46 million.

Quoting Management: David Paul, Chairman and CEO commented, “We are very pleased with our performance this quarter and for the first half of 2013. Our revenue growth and profitability margins remain at industry leading levels, driven by our focus on rapid product innovation, expanding our sales footprint, and efficient operational execution. This quarter we launched six new products, including LATISTM, the first laterally expanding unitary interbody fusion spacer on the market to offer the benefits of a traditional anterior implant through a posterior approach.”

Key Stats (on next page)…

Revenue increased 1.89% from $105.02 million in the previous quarter. EPS increased 0% from $0.21 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.2 and has not changed. For the current year, the average estimate is a profit of $0.83, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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