Globus Medical's FY16 Sales Guidance Tempers Q4, FY15 Above-The-Street Outlook

Traders in shares of Globus Medical Inc GMED are offering down the stock in Wednesday's after-hours session following some mixed preliminary results.

After closing up 2 percent at $27.61, the stock last traded at $26 even, down nearly 6 percent from the end of intraday trade.

The company said it's expecting fourth quarter revenue around $142.6 million, better than the analyst consensus estimate of just $139 million.

Looking ahead to the annual results, Globus Medical said its anticipating sales of about $544.7 million, up from the previously issued $539 million and slightly above the Street expectation of $541 million.

As is often the case, investors seem to have deemed the furthest-looking guidance figure as the most important. Fiscal-year 2016 sales are expected around $583 million, below the current analyst estimate of $590 million. Earnings are expected around $1.20 per share, very modestly above the sell-side estimate of $1.19.

"2016 EPS guidance reflects an increase in net income in line with our expected sales growth, as well as a positive contribution from the recently-announced suspension of the Medical Device Tax," Dan Scavilla, the company's CFO, said. "Our 2016 guidance reflects approximately 7% growth in sales and 10% growth in EPS over our expected 2015 results."