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Globus Medical (GMED) Global Sales, Innovation Aid Growth
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Globus Medical (GMED - Free Report) continues to gain from surging demand for its Musculoskeletal Solutions products. Meanwhile, the company’s series of product launches aid growth. The stock sports a Zacks Rank #1 (Strong Buy) currently.
Globus Medical is gaining market share in the musculoskeletal solutions space, banking on the strong performance of its implantable devices, biologics, accessories and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures.
The company is particularly seeing notable gains across its product portfolio in expandables, biologics, MIS screws, 3D printed implants and cervical offerings. Through the past few quarters, this business has registered above-market growth. driven by combined product offering, competitive rep recruiting from prior quarters and increased implant usage through robotic pull-through.
In the first quarter, Globus' musculoskeletal revenue surged 124.8%. The growth was primarily led by the contributions from the NuVasive merger. The company’s U.S. and international spine businesses, as well as continued share growth within trauma, further added to the growth.
During the first quarter, the company launched five new products, which are the DuraPro and VERZA power tool systems, the Reline 3D system for complex spinal deformity, the ANTHEM Distal Radius system with additional plating options and the ADIRA Aflex Plate system. The company is currently gearing up for a series of product launches throughout the Musculoskeletal portfolio in the coming months. Our model projects segment revenues to witness a 7.3% CAGR through 2024-2026.
In line with the company’s business strategy to focus on its integrated product development, Globus Medical is consistently making efforts in research and development. Per the company, its team-oriented approach, active surgeon input and demonstrated capabilities position it to maintain a rapid rate of product launches. Following NuVasive’s integration, the rate of product launches has accelerated significantly.
In the first quarter of 2024, the company launched five new products. The first two products were the DuraPro oscillating drill system and VERZA high-speed drill systems for hard and soft tissue preparation that represent Globus Medical’s initial entries into the power tools market. These two systems greatly complement the company’s portfolio, enabling best-in-class robotic navigation, musculoskeletal implant solutions, comprehensive biomaterial offerings and inter-operative imaging tools. Within Spine, the company launched the Reline 3D system for complex spinal deformity that allows for 3-dimensional control of the spine.
Further, the company, in February, launched the ADIRA Aflex Plate system that provides a rigid coupling to a variety of interbody spacers to enhance construct stability and promote repeatable placement. In Trauma, Globus Medical launched the ANTHEM Distal Radius system with additional plating options and more streamlined plate fitting. This system has received encouraging clinical feedback so far and has had a strong start since its introduction. Globus Medical currently expects it to be the flagship plate of its risk fracture fixation portfolio.
On the flip side, like other industry players, Globus Medical is currently grappling with negative trends in the global economy, including interest rate fluctuations, increases in inflation and financial market volatility. These factors are affecting the company’s operations and financial performance. The increasing geopolitical complexities across the globe, in particular, have resulted in a significant rise in raw material and freight costs for the company.
In the first quarter, the company incurred a 241% surge in the cost of goods sold. For 2024, our model estimates a 92.3% increase in the metric. The macroeconomic factors, along with rising wages and raw material costs, are also leading to a significant escalation in the company’s operating expenses. SG&A expenses in the first quarter were up 103.2% from the year-ago quarter. Our model estimate for the metric shows a 61.3% increase in 2024.
Hims & Hers Heath stock has surged 141.3% in the past year. Estimates for the company’s earnings have moved 11.1% north to 20 cents per share for 2024 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
The Zacks Consensus Estimate for Veracyte’s 2024 loss per share has remained constant at 5 cents in the past 30 days. Shares of the company have declined 8.1% year to date against the industry’s 6.1% growth.
VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 59.65%. In the last reported quarter, it delivered an earnings surprise of 89.47%.
Estimates for Haemonetics’ 2024 EPS have increased 2.4% to $4.57 in the past 60 days. Year to date, shares of HAE have risen 5.7% against the industry’s 3.2% decline.
In the last reported quarter, HAE delivered an earnings surprise of 2.27%. The company has a trailing four-quarter average earnings surprise of 13.24%.
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Globus Medical (GMED) Global Sales, Innovation Aid Growth
Globus Medical (GMED - Free Report) continues to gain from surging demand for its Musculoskeletal Solutions products. Meanwhile, the company’s series of product launches aid growth. The stock sports a Zacks Rank #1 (Strong Buy) currently.
Globus Medical is gaining market share in the musculoskeletal solutions space, banking on the strong performance of its implantable devices, biologics, accessories and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures.
The company is particularly seeing notable gains across its product portfolio in expandables, biologics, MIS screws, 3D printed implants and cervical offerings. Through the past few quarters, this business has registered above-market growth. driven by combined product offering, competitive rep recruiting from prior quarters and increased implant usage through robotic pull-through.
In the first quarter, Globus' musculoskeletal revenue surged 124.8%. The growth was primarily led by the contributions from the NuVasive merger. The company’s U.S. and international spine businesses, as well as continued share growth within trauma, further added to the growth.
During the first quarter, the company launched five new products, which are the DuraPro and VERZA power tool systems, the Reline 3D system for complex spinal deformity, the ANTHEM Distal Radius system with additional plating options and the ADIRA Aflex Plate system. The company is currently gearing up for a series of product launches throughout the Musculoskeletal portfolio in the coming months. Our model projects segment revenues to witness a 7.3% CAGR through 2024-2026.
Globus Medical, Inc. Price
Globus Medical, Inc. price | Globus Medical, Inc. Quote
In line with the company’s business strategy to focus on its integrated product development, Globus Medical is consistently making efforts in research and development. Per the company, its team-oriented approach, active surgeon input and demonstrated capabilities position it to maintain a rapid rate of product launches. Following NuVasive’s integration, the rate of product launches has accelerated significantly.
In the first quarter of 2024, the company launched five new products. The first two products were the DuraPro oscillating drill system and VERZA high-speed drill systems for hard and soft tissue preparation that represent Globus Medical’s initial entries into the power tools market. These two systems greatly complement the company’s portfolio, enabling best-in-class robotic navigation, musculoskeletal implant solutions, comprehensive biomaterial offerings and inter-operative imaging tools. Within Spine, the company launched the Reline 3D system for complex spinal deformity that allows for 3-dimensional control of the spine.
Further, the company, in February, launched the ADIRA Aflex Plate system that provides a rigid coupling to a variety of interbody spacers to enhance construct stability and promote repeatable placement. In Trauma, Globus Medical launched the ANTHEM Distal Radius system with additional plating options and more streamlined plate fitting. This system has received encouraging clinical feedback so far and has had a strong start since its introduction. Globus Medical currently expects it to be the flagship plate of its risk fracture fixation portfolio.
On the flip side, like other industry players, Globus Medical is currently grappling with negative trends in the global economy, including interest rate fluctuations, increases in inflation and financial market volatility. These factors are affecting the company’s operations and financial performance. The increasing geopolitical complexities across the globe, in particular, have resulted in a significant rise in raw material and freight costs for the company.
In the first quarter, the company incurred a 241% surge in the cost of goods sold. For 2024, our model estimates a 92.3% increase in the metric. The macroeconomic factors, along with rising wages and raw material costs, are also leading to a significant escalation in the company’s operating expenses. SG&A expenses in the first quarter were up 103.2% from the year-ago quarter. Our model estimate for the metric shows a 61.3% increase in 2024.
Other Key Picks
Other top-performing stocks in the broader medical space are Hims & Hers Health, Inc. (HIMS - Free Report) , Veracyte (VCYT - Free Report) and Haemonetics (HAE - Free Report) . While Hims & Hers Health and Veracyte currently sport a Zacks Rank #1 each, Haemonetics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hims & Hers Heath stock has surged 141.3% in the past year. Estimates for the company’s earnings have moved 11.1% north to 20 cents per share for 2024 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
The Zacks Consensus Estimate for Veracyte’s 2024 loss per share has remained constant at 5 cents in the past 30 days. Shares of the company have declined 8.1% year to date against the industry’s 6.1% growth.
VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 59.65%. In the last reported quarter, it delivered an earnings surprise of 89.47%.
Estimates for Haemonetics’ 2024 EPS have increased 2.4% to $4.57 in the past 60 days. Year to date, shares of HAE have risen 5.7% against the industry’s 3.2% decline.
In the last reported quarter, HAE delivered an earnings surprise of 2.27%. The company has a trailing four-quarter average earnings surprise of 13.24%.