Medical device company Globus Medical (NYSE: GMED) will be announcing earnings results tomorrow after market close. Here’s what to look for.
Globus Medical beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $657.3 million, up 6.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a narrow beat of analysts’ constant currency revenue estimates.
Is Globus Medical a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Globus Medical’s revenue to grow 3.4% year on year to $627.6 million, slowing from the 119% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.74 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Globus Medical has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.5% on average.
Looking at Globus Medical’s peers in the medical devices & supplies - specialty segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Inspire Medical Systems delivered year-on-year revenue growth of 22.7%, beating analysts’ expectations by 3.1%, and Integer Holdings reported revenues up 7.3%, topping estimates by 2%. Inspire Medical Systems traded up 1.8% following the results while Integer Holdings was also up 2.6%.
Read our full analysis of Inspire Medical Systems’s results here and Integer Holdings’s results here.
There has been positive sentiment among investors in the medical devices & supplies - specialty segment, with share prices up 5.9% on average over the last month. Globus Medical is up 2.6% during the same time and is heading into earnings with an average analyst price target of $97.46 (compared to the current share price of $70.43).
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