Globus Medical ticks up as Q4 prelims beat expectations

Shares of Globus Medical (NYSE:GMED) ticked up nearly 2% yesterday after the orthopedic implant maker reported preliminary 4th-quarter results that topped expectations.

Audubon, Pa.-based Globus said it expects Q4 revenues to come in at roughly $142.6 million, ahead of the consensus expectation on Wall Street for $139.2 million. Full-year sales are pegged at $544.7 million, again ahead of The Street’s $541.1 million forecast.

GMED shares closed at $27.59 apiece yesterday, up 1.9%.

“In 2015 we continued our focus on growing the business through expanding the sales force and launching innovative products. Our 4th-quarter and full-year results demonstrate the effective execution of our strategy, achieving strong sales growth and market share gains. We also continued to invest significantly in our emerging technologies platforms throughout the year for sustained, long-term growth potential. Looking to 2016, we are confident in our ability to continue to grow our business faster than the overall spine market,” chairman & CEO David Paul said in prepared remarks.

Globus said it expects to post adjusted earnings per share of $1.20 this year on sales of $583 million.

“2016 EPS guidance reflects an increase in net income in line with our expected sales growth, as well as a positive contribution from the recently-announced suspension of the medical device tax. The full impact of the suspended medical device tax is expected to be about 6¢ per share. We plan to redirect approximately 40% of this benefit into increased job creation initiatives in R&D and manufacturing in 2016. Our 2016 guidance reflects approximately 7% growth in sales and 10% growth in EPS over our expected 2015 results,” added CFO Dan Scavilla.

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