By Mackenzie Tatananni
Globus Medical stock was headed for its largest same-day percentage increase on record Friday, and analysts expect the gains to continue.
A boost to its full-year outlook was lifting shares on Friday. Globus Medical guided for adjusted earnings between $3.75 and $3.85 a share, up from $3 to $3.30. Analysts polled by FactSet were looking for $3.65.
The company now expects revenue in the range of $2.86 billion to $2.9 billion versus $2.8 billion to $2.9 billion previously. Wall Street forecast revenue of $2.88 billion, or the midpoint of the range.
Shares surged 34% to $82.48, heading for the highest close since Feb. 20, according to Dow Jones Market Data. The benchmark S&P 500 was down 0.9%.
The company's third-quarter print was solid. Worldwide net sales grew 22% to $769 million, handily beating the $734.7 million consensus among analysts polled by FactSet. Adjusted earnings came to $1.18 a share, topping Wall Street's calls for 78 cents.
The increase in sales was largely driven by outperformance in Globus Medical's U.S. Spine business, which posted 10% growth. The business includes the company's flagship ExcelsiusGPS surgical robot.
Another standout in the quarter was Nevro, the medtech Globus Medical acquired in April. Nervo makes devices that treat chronic back and leg pain by stimulating the spinal cord. Excluding contributions from that business, net sales were $669.8 million, an increase of 7% year over year.
Nevro "continued to exceed expectations" in the quarter, CEO Keith Pfeil said. He noted on the earnings call that the business also delivered a positive adjusted Ebitda margin, finishing at 16.2%. The company expects the acquisition to be accretive to earnings in 2025.
The strong earnigns compelled analysts at several firms to upgrade Globus Medical shares. BofA Securities analysts upgraded the stock to Buy from Neutral and hiked their price target to $91 from $65.
While Globus Medical posted record revenue and earnings in the third quarter, "the biggest reason for our change of view is GMED's ability to deliver profits and cash flow and ability for these profits to compound higher," analysts wrote.
Similarly, Truist Securities upgraded shares to Buy from Hold and raised its price target to $93 from $65.
While sales in Globus Medical's Emerging Tech business were softer than anticipated at $28 million, this weakness was more than offset by accelerating trends within the core Spine business and Nevro accretion, which is getting pulled forward nearly one year ahead of expectations, the firm said.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
November 07, 2025 11:08 ET (16:08 GMT)
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