What Happened?
Shares of medical device company Globus Medical (NYSE:GMED) jumped 5.1% in the morning session after the company reported strong second-quarter financial results that surpassed Wall Street's expectations for both revenue and profit. The medical device company announced second-quarter worldwide net sales of $745.3 million, an 18.4% increase year-over-year, which topped analyst forecasts. Adjusted earnings per share landed at $0.86, comfortably beating the consensus estimate of $0.75. The results were supported by the ongoing integration of its 2023 acquisition of NuVasive, which expanded the company's global reach and product offerings in the spine technology market. Looking forward, Globus Medical reaffirmed its full-year 2025 guidance, projecting revenue around $2.85 billion and adjusted earnings per share of approximately $3.15, signaling confidence in its outlook.
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What Is The Market Telling Us
Globus Medical’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock dropped 6.6% following the unexpected resignation of its President and CEO, Daniel Scavilla. The medical device company announced that Scavilla resigned effective July 18 to pursue another opportunity. He will be replaced by Keith Pfeil, who was promoted from his role as Chief Operating Officer and Chief Financial Officer. While the company reaffirmed its full-year 2025 guidance for revenue and earnings per share, the sudden change in the corner office appears to have unsettled investors, leading to the stock's decline. The departure introduces a level of uncertainty, even with a well-regarded internal successor and positive sales momentum.
Globus Medical is down 30.2% since the beginning of the year, and at $57.11 per share, it is trading 38.8% below its 52-week high of $93.32 from January 2025. Investors who bought $1,000 worth of Globus Medical’s shares 5 years ago would now be looking at an investment worth $1,032.
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