Stock Alert: Bullish Momentum Continues For Globus Medical
Shares of medical devices company Globus Medical, Inc. (GMED) have climbed $4.35 or 8.66% on Thursday before closing at $54.59.
Globus Medical is a maker of implantable devices, disposables, and unique instruments used in a wide range of spine, orthopedic trauma, hip, knee, and extremity procedures.
The company had launched three new spine products in the first quarter and two more in April.
While talking to analysts during the first-quarter earnings call early this month, the company said, even though the Covid-19 pandemic has impacted the company badly, it has not lost any deals. Spine business, after declining more than 70% from the pre-Covid time, has started rising steadily as several states have begun to allow elective surgeries to commence again, the company noted. It expects spike in procedures when surgeons start to treat the growing backlog of patients in need of surgical intervention.
In the third quarter the company plans to submit the imaging system to the FDA and anticipates its clearance of the cranial module for ExcelsiusGPS.
In March, the company had announced $200 million share buy-back.
When the company reported first-quarter results early this month, sales had increased 4.2% year-on-year at $190.6 million. Analysts polled by Thomson Reuters were expecting revenue of $194.5 million. The company had approximately $20 million negative sales impact due to Covid-19 during the quarter.
Adjusted EPS for the quarter of $0.29 missed analysts estimate of $0.38 and decreased from $0.36 last year.
Globus Medical went to a new low of $33.41 in mid-March due to coronavirus induced stock market slump and recovered more than 60% since then at yesterday’s closing price. The stock had recorded a 52-week high of $60.15 in December last year.
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