Stock Alert: Globus Medical (GMED)

Globus Medical Inc. (GMED) is all set to announce its financial results for the fourth quarter and full-year ended December 31, 2019, after the market close on February 20, 2020.

Globus Medical is a medical device company marketing implantable devices, disposables, and unique instruments used in an expansive range of spine, orthopedic trauma, hip, knee, and extremity procedures.

According to the preliminary results announced by the Company last month, Q4, 2019 sales are expected to be approximately $211.0 million, an increase of 7.7% over the fourth quarter of 2018.

Wall Street analysts are looking for earnings of $0.52 per share on revenue of $210.44 million for the fourth quarter of 2019.

The full-year 2019 sales are expected to be roughly $784.7 million compared to $712.9 million in 2018.

With a stronger robotic pipeline and several significant product introductions planned in both Musculoskeletal Solutions and Enabling Technologies, the Company is optimistic about the future and expects net sales to be about $850 million in 2020.

GMED has traded in a range of $38.37 to $60.15 in the last 1 year. The stock closed Wednesday’s trading at $55.59, up 0.74%.

Barclays Says U.K. Regulator Probes CEO Jes Staley Tie to Jeffrey Epstein

Barclays says the relationship between CEO Jes Staley and Jeffrey Epstein was the subject of an inquiry from the Financial Conduct Authority, which is ongoing, according to a statement, Bloomberg News reports. The banker retains the full confidence of the board, and is being unanimously recommended for re-election at the AGM.   

More information is available on the Bloomberg Terminal.

Clariant earnings fall on one-off costs

Clariant AG said Thursday that its earnings for 2019 significantly fell on one-off costs and weaker performance and that it is stepping up its efficiency measures, which include job cuts.

The Swiss chemical company said its net profit fell to 10 million Swiss francs ($10.2 million) for the full year compared with CHF337 million for 2018.

Earnings before interest, taxes, depreciation and amortization after exceptional items fell to CHF461 million from CHF607 million in the period.

Earnings were hit by a provision of CHF231 million for a competition investigation by the European Commission, but also by a weaker operational performance and carve-out costs in the discontinued operations and higher income taxes, the company said.

Sales from continuing operations for the year fell slightly to CHF4.39 billion from CHF4.40 billion, while fourth-quarter sales stood at CHF1.13 billion.

The company proposed an unchanged dividend of CHF0.55 a share.

Looking ahead, the company expects growth to be more limited in 2020 and it has chosen additional efficiency measures.

"Given that we expect the sluggish economic environment to continue in 2020, we have launched selective efficiency measures in all our businesses to further support the increase in profitability," Executive Chairman Hariolf Kottmann said.

The measures will include around 500 to 600 jobs cuts over the next two years and a cost-base reduction of around CHF50 million.

Write to Kim Richters at [email protected]

Pernod Ricard cuts guidance, blaming the coronavirus

Pernod Ricard SA on Thursday slashed its full-year guidance, saying that it expects the coronavirus outbreak to have a severe impact on its third fiscal quarter, even as it reported higher net profit and sales for the first half of its fiscal year.

The French premium spirits maker RI, +0.41% reported net profit of 1.03 billion euros ($1.12 billion), up from EUR1.02 billion a year earlier.

Pernod Ricard posted second-quarter sales of EUR2.99 billion, a rise of 4% on an organic basis, which strips out currency fluctuations and acquisitions. Sales for the first half rose to EUR5.47 billion from EUR5.19 billion previously.

Despite the rise in sales and earnings, the maker of Absolut vodka and Jameson whiskey said that it now expects lower organic growth in its underlying profit as it assumes the coronavirus to have a “severe” impact on its business, mainly on the third quarter. Pernod Ricard cut its guidance of organic growth in profit from recurring operation for fiscal 2020 to 2%-4%, from previous expectations of 5%-7%.

“We will stay the strategic course and maintain priority investments in order to continue maximising long-term value creation,” Chairman and Chief Executive Alexandre Ricard said.

Nestle profit boosted by sale of its skin-health business

Nestle SA said Thursday that 2019 net profit rose, boosted by the sale of its skin-health business.

The Swiss food-and-beverage company NSRGY, -1.25%NESN, -1.25% said net profit was 12.6 billion Swiss francs ($12.90 billion) compared with CHF10.1 billion the previous year.

Sales rose 1.2% to CHF92.57 billion on year and organic growth was 3.5% in line with guidance, the company said.

Analysts had forecast net profit of CHF11.77 billion and sales of CHF92.97 billion, according to a consensus compiled by FactSet.

“Organic growth accelerated, fueled by strong momentum in the United States and Purina PetCare globally,” Chief Executive Mark Schneider said. “Profitability improved again and reached our guided range one year ahead of plan.”

The company said it proposed a dividend increase to CHF2.70 a share and started a new share buyback program of up to CHF20 billion in 2020.

Looking ahead, Nestle said it expects a continued increase in organic sales growth and forecasts growth acceleration toward the mid-single digit range in the 2021-22 period.

The company said it is too early to assess the impact of the coronavirus outbreak.