Globus Medical (NYSE:GMED) said today it acquired Swiss robotic developer KB Medical, and released 2nd quarter earnings that beat The Streets earnings per share expectations, but fell short of sales expectations.
The company said it closed the acquisition of KB Medical during its 2nd quarter, and that the buy would help expand its imaging, navigation and robotics portfolios.
“The acquisition of KB Medical demonstrates Globus Medical’s continued commitment and enthusiasm for the potential impact of robotic technology on surgery. The addition of KB Medical will enable Globus Medical to accelerate, enhance and expand our product portfolio in imaging, navigation and robotics. KB Medical’s experienced team of technology development professionals, its strong IP portfolio, and shared philosophy for robotic solutions in medicine strengthen Globus Medical’s position in this strategic area,” emerging tech prez Dave Demski said in a prepared statement.
The Audubon, Penn.-based company also released its 2nd quarter earnings reports, posting profits of $28.7 million, or 29¢ per share, on sales of $152.4 million for the 3 months ended June 30, for bottom-line growth of 11.1% while sales grew 10.8% compared with the same period last year.
After excluding 1-time items, earnings per share were 32¢, just ahead of the 30¢ consensus on Wall Street, where analysts were expecting to see sales of $152.6 million.
“Our worldwide sales for the second quarter were $152.4 million, an increase of 10.8% over the second quarter of 2016. Our adjusted EBITDA margins remained at an outstanding 35.1% and we also delivered non-GAAP EPS of $0.32. We are pleased with our performance during the second quarter. We made significant progress with competitive rep hiring, further expanded our in-house manufacturing capacity, and continued to run an extremely efficient organization with best in class adjusted EBITDA margins. During the quarter we completed the acquisition of KB Medical, an innovative robotics company out of Switzerland. This acquisition significantly bolsters our development team, intellectual property, and product portfolio. KB Medical has a tremendous team of innovative developers that share our philosophy, approach, and strategy for robotic solutions in medicine. We remain confident in our long-term growth prospects and our ability to sustain industry-leading profitability by continuing to execute on our strategy of rapid product introduction, expansion of our U.S. and international sales footprints, and diligent expense control,” CEO David Paul said in a press release.
Globus Medical reaffirmed its earlier guidance for the full fiscal year 2017, expecting to post sales of $625 million with non-GAAP earnings per share of $1.27.
Shares in Globus Medical have fallen 3.7% so far today, at $29.44 as of 1:02 p.m. EDT.
