Globus Medical (NYSE:GMED) posted first-quarter results today that missed the consensus forecast on Wall Street and reaffirmed its outlook for the rest of the year.
The Audubon, Pennsylvania–based musculoskeletal solutions developer today reported profits of $38.1 million, or $0.37 per diluted share, on sales of $230.5 million for the three months ended March 31, 2022, for a bottom-line decrease of 16% and sales growth of 1.4% compared with Q1 2021.
President and CEO Dan Scavilla — promoted from CCO last month to replace Dave Demski as CEO — said COVID-19 deferrals of elective procedures were particularly challenging in January and early February.
“Importantly, U.S. Spine sales recovered and had a record-breaking month in March, which continued at a healthy pace in April,” Scavilla said in a news release. “After a record fourth quarter, Enabling Technologies sales in the quarter were also negatively impacted by COVID-19; however, the clinical superiority of ExcelsiusGPS continues to drive surgeon and hospital interest in the system, building a strong pipeline.”
Adjusted to exclude one-time items, earnings per share were $0.42, a nickel short of the Street, where analysts were looking for EPS of $0.47 on sales of $234.17 million.
Globus said it still expects to log adjusted EPS of $2.10 this year on $1.025 billion in sales.
Investors reacted by sending GMED shares down nearly 3% to $58.30 in after-hours trading.
BTIG analysts said Q2 is a “must make quarter” for the company.