Shares of Globus Medical (NYSE:GMED) were soaring 13.9% higher as of 3:21 p.m. EDT on Thursday. The big jump came after the medical device maker reported its second-quarter results before the market opened.
Globus Medical announced revenue in the second quarter of $148.9 million, down 23.4% year over year. It posted a net loss in Q2 of $20.8 million, or $0.21 per share, based on generally accepted accounting principles (GAAP). That reflected a sharp decline from GAAP earnings of $38.2 million, or $0.38 per share, in the prior-year period. However, the company reported adjusted earnings of $0.07 per share.
So why did the healthcare stock surge with year-over-year declines on both the top and bottom lines? Globus blew past expectations. It topped the consensus Wall Street estimate for revenue in Q2 by more than 49%. The company's adjusted earnings were nearly 164% better than expected.
Lower sales and earnings in the second quarter were a foregone conclusion for Globus Medical with the COVID-19 pandemic causing patients to delay elective procedures. However, in a statement, CEO Dave Demski said the 23% revenue decline as "an exceptional result when compared to our peers within the industry."
Globus Medical should return to growth soon. Demski said that the company's manufacturing has continued at a record pace "in anticipation of the bounce back we are already starting to see." He noted that U.S. spine procedures are rebounding after hitting bottom in mid-April. Demski added that "Globus is poised for robust growth if the recent trends continue."