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Investing.com - Needham maintained its Hold rating on Globus Medical (NYSE:GMED), a $7.2 billion medical device company currently trading near its 52-week low, following the company’s announcement of a CEO transition and preliminary second-quarter revenue results.
The medical device company reported preliminary second-quarter 2025 revenue of $745 million, exceeding consensus estimates of $740 million. However, Globus Medical’s base business results of $651 million, representing a 3.3% reported increase despite a 1.5% selling day headwind, fell short of the $664 million consensus expectation. According to InvestingPro data, the company maintains robust financial health with a 4.45 current ratio and has achieved impressive revenue growth of 32.26% over the last twelve months.
Globus Medical announced that Dan Scavilla has departed the company effective July 18 to become CEO of another firm effective August 1. Keith Pfeil, who previously served as CFO since 2019 and COO since 2024, has been appointed as the new CEO, while Kyle Kline has been named CFO.
Despite the leadership change and mixed revenue results, Globus Medical reaffirmed its full-year 2025 guidance, projecting revenue between $2.8 billion and $2.9 billion and earnings per share between $3.00 and $3.30. InvestingPro analysis suggests the stock is currently undervalued, with 11 additional ProTips available to subscribers, including insights on shareholder yield and cash flow metrics.
Needham indicated it would wait to update its financial model until Globus Medical reports complete second-quarter results, expected on August 7, noting that the preliminary announcement contained "incrementally more for the Bears than the Bulls."
In other recent news, Dentsply Sirona announced that Daniel Scavilla will assume the role of President and CEO starting August 1, 2025, succeeding Simon Campion. Scavilla, who has over 30 years of experience in the medical technology and pharmaceutical sectors, previously led Globus Medical’s $3 billion acquisition of NuVasive (NASDAQ:NUVA). Alongside this leadership change, Dentsply Sirona released preliminary second-quarter 2025 financial results, projecting net sales of approximately $935 million and adjusted earnings per share between $0.50 and $0.52. The company reaffirmed its full-year 2025 outlook, with complete second-quarter results expected on August 7, 2025.
Meanwhile, Globus Medical appointed Keith Pfeil as the new CEO, effective July 18, 2025, following Daniel Scavilla’s resignation. The company reported an anticipated 18.4% increase in second-quarter 2025 revenue, reaching approximately $745.3 million, and maintained its full-year revenue guidance between $2.80 billion and $2.90 billion. Globus Medical also expanded its navigation capabilities with the introduction of the DuraPro oscillating system, aimed at enhancing spine surgery workflows. Analyst firm Piper Sandler maintained an Overweight rating on Globus Medical, while BTIG downgraded the stock to Neutral, citing concerns about the company’s Spine business performance and market share challenges.
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