The Audubon, Penn.-based company posted profits of $25.6 million, or 26¢ per share on sales of $151.7 million for the 3 months ended September 30, seeing the bottom line shrink 2.4% while sales grew 11.9% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were 30¢, just in line with consensus on Wall Street where analysts were expecting to see revenue of $150.4 million.
“We are very pleased with our third quarter performance. We saw further acceleration in our U.S. spinal implant business, continued growth in the Japan market, and industry leading profitability, even as we invested heavily in Emerging Technologies. As previously announced, we received FDA clearance during the quarter for the ExcelsiusGPS robotic and navigation system. While still in the early stages of our commercial launch of this game-changing technology, we are thrilled about the unprecedented level of interest we have received so far from surgeons and hospital systems,” CEO Dave Demski said in a press release.
The company reaffirmed its guidance for the full fiscal year 2017, expecting to see sales of $625 million and non-GAAP earnings per share of $1.27.
Shares in Globus have risen 7% so far today, at $34.05 as of 2:34 p.m. EST.
Globus Medical’s solid performance in the 3rd quarter made it stand in a quarter that’s often rough for spinal companies, according to Leerink Partner analyst Richard Newitter.
“We continue to believe GMED is on the cusp of a significant rev growth re-acceleration heading into 4Q17 and 2018 as the company’s emerging tech (robotics & trauma) begin to contribute more meaningfully. Historically, GMED’s stock & multiple have tended to work during rev growth acceleration periods, and we expect GMED is about to generate one of its strongest growth rebounds over the next 12-14 months,” Newitter said in a letter to investors.
In late August, Globus Medical said that it named David Demski as its new chief executive officer, replacing David Paul who stepped down due to health issues but will stay on as executive chairman.