Globus Medical (GMED) stock is poised to retake its 200-day in bullish volume Friday after the company's new Nevro division stimulated a third-quarter beat and raise.

The company acquired Nevro for $250 million in April. Nevro makes devices that treat chronic pain by stimulating the spinal cord. Needham analyst David Saxon said the Nevro division was the standout on Globus Medical's top and bottom line.

Nevro sales were $99 million, up just 2% year over year. But the division's adjusted earnings before interest, taxes, depreciation and amortization margin reached 16%. In the prior quarter, Nevro had a 1% loss.

"Management now expects it to be accretive in 2025 (vs. second year post-close previously)," Saxon said in a note. "GMED continues to integrate NVRO and expects to be largely done around mid-2026."

Globus Medical stock shot up 36.1%, closing at 83.89. Shares ended the regular session above their 200-day line at an eight-month high.

Globus Medical Stock Jumps On Hiked Outlook

Across all segments, Globus' sales grew 6.4% organically to $769 million, topping forecasts for $735 million. Adjusted earnings came in at $1.18 per share, walloping expectations for 78 cents. That included a one-time tax benefit worth 7 cents a share. Earnings surged more than 42%.

Needham's Saxon noted growth in U.S. spine, while Globus' trauma division "is nearing critical mass, enabling it to compete in high volume trauma centers." The spine division sells products that treat musculoskeletal problems. Globus' trauma business focuses on musculoskeletal injuries.

For the year, Globus now expects $2.86 billion to $2.9 billion in sales, up from its previous range for $2.8 billion to $2.9 billion. The company also sees adjusted profit of $3.75 to $3.85 a share, up 65 cents per share, at the midpoint, from the guidance issued three months ago.

Saxon reiterated his hold rating on Globus Medical stock.

Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.

YOU MAY ALSO LIKE:

The Weight-Loss Drugs Craze Is Going Strong. But Stock Investors Should Know A Few Things.

Intellia Therapeutics Crashes After A Patient In Its Pivotal Study Dies