Globus Medical gains on Street-beating prelims | Wall Street Beat

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Globus Medical (NYSE:GMED) shares closed up yesterday after the orthopedics company reported preliminary fourth-quarter and 2018 sales numbers that beat the consensus forecast on Wall Street.

Audubon, Pa.-based Globus said it expects to post Q4 revenues of $195.5 million and full-year sales of $712.5 million; analysts on The Street were looking for quarterly sales of $188.2 million and annual sales of $705.2 million.

“Our fourth-quarter and full-year results are indicative of strong momentum in several key strategic areas,” CEO Dave Demski said in prepared remarks. “The fourth quarter marked the fifth consecutive quarter of double-digit organic revenue growth, which is particularly outstanding considering the strong comparable quarter last year. Emerging technologies delivered $14.8 million, or 35% growth, a significant accomplishment given the pent-up demand implicit in the fourth quarter of 2017 when we launched our robotic system. The U.S. spinal implant business grew by over 9% year-over-year, continuing the acceleration we saw in the third quarter, driven by robotic implant pull-through and strong recruiting.”

“We are pleased with our fourth quarter and full year performance,” added CFO Dan Scavilla. “We delivered 12% revenue growth and maintained our industry-leading profitability while investing significantly in growing our emerging technologies business. While we are not announcing fourth-quarter or full-year EPS or EBITDA at this time, our performance in the quarter was consistent with our long history of growing efficiently and profitably.”

Globus set its 2019 guidance at $17.72 per adjusted share on sales of $770 million, saying it plans to release its full results Feb. 21.

GMED shares closed up 2.8% at $39.84 apiece yesterday.

ConforMIS tops consensus

ConforMIS (NSDQ:CFMS) also topped the consensus with its Q4 and 2018 top line, saying it expects to post quarterly sales of $22.0 million and annual sales of $89.8 million, including the $10.5 million royalty settlement of its patent victory over Smith & Nephew last year.

Analysts were looking for Q4 sales of $20.8 million and 2018 sales of $86.37 million. Bedford, Mass.-based ConforMIS, which makes customized orthopedic implants, said it plans to report its full results Feb. 6.

CFMS shares closed up 4.4% at 50.5¢ apiece yesterday.

Tactile Systems surges after killing the consensus

Tactile Systems Technology (NSDQ:TCMD) gained big yesterday after crushing the consensus outlook and predicting double-digit top-line growth for this year.

The Minneapolis-based home healthcare device maker guided to Q4 sales of $45.5 million to $46.0 million and full 2018 sales of $142.8 million to $143.3 million, compared with The Street at $38.9 million and $137.7 million, respectively.

“We are excited to close the year with another quarter of strong execution, with revenue growth in excess of 30%, driven by sales of our Flexitouch systems,” CEO Gerald Mattys said in prepared remarks. “Our Flexitouch sales this quarter were driven by several of our primary growth drivers, including the expansion of and continuing execution from our field sales team, and higher than expected volume from a direct contract with a large commercial payer initiated in the third quarter. 2018 was an exceptional year for Tactile Medical, with record sales growth driven by the successful launch of our Flexitouch Plus system in the second quarter, our targeted selling strategy focused on our most productive accounts and strong sales growth in the Veterans Administration channel.

“Looking ahead to 2019, we remain confident in our ability to deliver 20% plus revenue growth and improving profitability as we continue to expand our share of the $4+ billion U.S. market in lymphedema and chronic venous insufficiency,” Mattys said.

TCMD shares closed up 26.2% at $59.73 apiece yesterday. The stock was trading at $59.16 per share today in early trading, down -0.1%.

Iridex slides despite beating forecast

Iridex (NSDQ:IRIX) shares slid after the company released its Q4 and 2018 prelims, despite topping the consensus forecast yesterday.

The Mountain View, Calif.-based laser device maker said it expects to log fourth-quarter sales of $11.0 million to $11.3 million and 2018 sales of$42.1 million to $42.4 million, topping The Street’s outlook for $10.9 million and $42.0 million, respectively.

“Our fourth-quarter results completed an exciting year for Iridex. Our commercial teams continued to drive growth in Cyclo G6 placements and we shipped a record number of G6 probes in the quarter. Overall, I am encouraged by the progress we made throughout the year, as we executed on multiple fronts across the organization,” chairman & CEO William Moore said in prepared remarks. “Heading into 2019, we remain focused on driving awareness and sales among a broad base of glaucoma specialists and comprehensive ophthalmologists, while continuing to innovate and advance our platform to treat the spectrum of the disease.”

Neuronetics also slips after beating The Street

Neuronetics (NSDQ:STIM) shares also took a hit despite beating The Street for both Q4 and 2018.

The Malvern, Pa.-based company, which makes transcranial magnetic stimulation to treat psychiatric disorders, reported Q4 sales of $15.6 million and full-year sales of $52.8 million, which topped both Wall Street and its own 2018 guidance for revenues of $51.0 million to $52.5 million.

Analysts were looking for Q4 sales of $14.9 million and annual sales of $51.8 million.

“We finished 2018 on a high note, as we continue to successfully execute on our strategy to drive higher NeuroStar Advanced Therapy penetration in the U.S.,” president & CEO Chris Thatcher said in prepared remarks. “As we move into 2019, given the success we have seen to date, we will continue to drive adoption through our key growth drivers – expanding our salesforce and related marketing efforts, continuing to focus on high-value accounts and pursuing additional indications for use for the NeuroStar Advanced Therapy system.”

Neuronetics also said it expects a reimbursement decision from the Japanese Ministry of Health, Labour & Welfare during the second half of this year for NeuroStar.

STIM shares closed down -3.6% at $17.00 per share yesterday. The stock was off -.04% at $16.93 per share today in early trading.

The post Globus Medical gains on Street-beating prelims | Wall Street Beat appeared first on MassDevice.

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