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This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, GMED has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, GMED expected to earn 19 cents per share, while it actually produced earnings of 22 cents per share, a beat of 15.8%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 22 cents a share, when it actually saw earnings of 25 cents a share instead, representing a 13.6% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Globus Medical. In fact, the Earnings ESP for GMED is positive, which is a great sign of a coming beat.
After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for GMED, as the firm currently has a Zacks Earnings ESP of 4.76%, so another beat could be around the corner.
This is particularly true when you consider that GMED has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that GMED could see another beat at its next report, especially if recent trends are any guide.
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GLOBUS MEDICAL (NYSE: GMED): Free Stock Analysis Report
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