Globus Medical, Inc. (NYSE:GMED) just released its latest quarterly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$598m, statutory earnings missed forecasts by 12%, coming in at just US$0.54 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Globus Medical after the latest results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Globus Medical. Read for free now.NYSE:GMED Earnings and Revenue Growth May 11th 2025

Taking into account the latest results, the consensus forecast from Globus Medical's 14 analysts is for revenues of US$2.83b in 2025. This reflects a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 90% to US$2.60. In the lead-up to this report, the analysts had been modelling revenues of US$2.73b and earnings per share (EPS) of US$2.81 in 2025. So it's pretty clear consensus is mixed on Globus Medical after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

View our latest analysis for Globus Medical

The analysts also cut Globus Medical's price target 10% to US$87.23, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in revenue. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Globus Medical at US$105 per share, while the most bearish prices it at US$68.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Globus Medical's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2025 being well below the historical 27% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.2% per year. So it's pretty clear that, while Globus Medical's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Globus Medical. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Globus Medical going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk.  We've identified 1 warning sign  with Globus Medical , and understanding it should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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