Globus Medical (GMED) reports earnings tomorrow: what to expect

What happened

Globus Medical, a medical device company, is scheduled to report results Thursday after the market closes. Analysts expect revenue to grow 3% year on year this quarter, compared with 22.9% growth in the same quarter last year; estimates were generally reaffirmed over the past 30 days.

Confirmed

Global impact / market context

The results will show whether sales growth is slowing as analysts expect. Revenue matters because it reflects demand for the company’s products; a weaker or stronger result could influence expectations for future sales and the resources Globus Medical can put toward its business.

Analyst inference

Last quarter, Globus Medical reported revenue of $789.6 million, up 5.9% year on year, and exceeded analysts’ revenue and earnings-per-share estimates. Peer results were mixed: Inspire Medical Systems’ revenue fell 7.9%, while Bausch + Lomb’s rose 7.3%.

Confirmed

What to watch

1. Check reported revenue against the 3% year-on-year growth analysts expect; the comparison will indicate whether sales growth is tracking the forecast slowdown. Confirmed
2. Look for updated earnings guidance, meaning the company’s forecast for future results, to see whether management expects sales or profit to strengthen or weaken. Analyst inference
3. Compare Globus Medical’s results with the reported peer figures: Inspire Medical Systems’ revenue declined 7.9%, while Bausch + Lomb’s increased 7.3%. Confirmed

Evidence

• stockstory.org