What Happened?

Shares of medical device company Globus Medical (NYSE: GMED) jumped 32.7% in the afternoon session after the company reported third-quarter results that significantly beat analyst estimates and raised its full-year guidance. 

For the third quarter, net sales reached $769 million, a 22.9% increase year-on-year that surpassed the $734.8 million consensus estimate. The company's adjusted earnings per share (EPS) was even more impressive, coming in at $1.18, which was substantially higher than the projected $0.77. Buoyed by the strong performance, Globus Medical increased its full-year 2025 guidance for both revenue and adjusted EPS. Overall, the significant top- and bottom-line beats, coupled with a more optimistic outlook for the full year, drove investor enthusiasm.

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What Is The Market Telling Us

Globus Medical’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Globus Medical and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 28 days ago when the stock dropped 3.8% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.

Globus Medical is flat since the beginning of the year, and at $82.30 per share, it is trading 11.8% below its 52-week high of $93.32 from January 2025. Investors who bought $1,000 worth of Globus Medical’s shares 5 years ago would now be looking at an investment worth $1,417.

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