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Nevro (NVRO) Q3 Loss Narrower Than Expected, Revenues Up Y/Y
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Nevro Corp. (NVRO - Free Report) reported third-quarter 2019 loss of 58 cents per share, narrower than the Zacks Consensus Estimate of a loss of 85 cents. The company had incurred a loss of 37 cents in the year-ago quarter.
The Zacks Rank #3 (Hold) company posted revenues of $100.2 million, which surpassed the Zacks Consensus Estimate by 6.2%. The figure also rose 4.7% year over year.
Quarter Highlights
In the quarter under review, international revenues were $16 million, flat year over year but up 5% at constant currency.
U.S. revenues for the quarter totaled $100.2 million, up 5% year over year. The upside was primarily driven by Spinal Cord Stimulation (SCS) procedure growth.
Additionally, U.S. patient trials and permanent implants each grew 18% on a year-over-year basis. The company also launched the Senza Omnia SCS System commercially in the United States.
Margins
Gross profit totaled $69.9 million, up 4% year over year. Gross margin was 69.8%, down 50 basis points.
Operating expenses rose 12.3% year over year to $85.9 million. Research and development expenses totaled $13 million, up 4.3% year over year.
Sales, general and administrative expenses were up 13.9% year over year to $72.9 million.
Guidance
Nevro raised its revenue guidance for 2019.
The company now expects revenues in the range of $368-$374 million compared with the previous expectation of $383-$386 million. The Zacks Consensus Estimate for the same is pegged at $375.7 million, above the projected range.
Gross margin is expected in the range of 68-70% as a percentage of revenues.
Summary
Nevro exited the second quarter on a strong note. The company’s domestic and international revenues surged on a year-over-year basis. Also, demand for implants drove the solid quarterly show. The commercial launch of the Senza Omnia SCS System buoys optimism. A raised guidance for 2019 holds promise.
On the flip side, increased operating expenses raise concern. Gross margin contracted in the quarter.
Edwards Lifesciences delivered third-quarter 2019 adjusted earnings per share (EPS) of $1.41, which outpaced the Zacks Consensus Estimate by 15.6%. Net sales of $1.09 billion surpassed the Zacks Consensus Estimate by 5.5%.
Thermo Fisher delivered third-quarter 2019 adjusted EPS of $2.94, which surpassed the consensus mark by 2.1%. Revenues of $6.27 billion outpaced the same by 1.3%.
ResMed reported fiscal first-quarter 2020 adjusted EPS of 93 cents, which beat the Zacks Consensus Estimate of 87 cents by 6.9%. Revenues were $681.1 million, which surpassed the Zacks Consensus Estimate by 3.6%.
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Nevro (NVRO) Q3 Loss Narrower Than Expected, Revenues Up Y/Y
Nevro Corp. (NVRO - Free Report) reported third-quarter 2019 loss of 58 cents per share, narrower than the Zacks Consensus Estimate of a loss of 85 cents. The company had incurred a loss of 37 cents in the year-ago quarter.
The Zacks Rank #3 (Hold) company posted revenues of $100.2 million, which surpassed the Zacks Consensus Estimate by 6.2%. The figure also rose 4.7% year over year.
Quarter Highlights
In the quarter under review, international revenues were $16 million, flat year over year but up 5% at constant currency.
U.S. revenues for the quarter totaled $100.2 million, up 5% year over year. The upside was primarily driven by Spinal Cord Stimulation (SCS) procedure growth.
Nevro Corp. Price, Consensus and EPS Surprise
Nevro Corp. price-consensus-eps-surprise-chart | Nevro Corp. Quote
Additionally, U.S. patient trials and permanent implants each grew 18% on a year-over-year basis. The company also launched the Senza Omnia SCS System commercially in the United States.
Margins
Gross profit totaled $69.9 million, up 4% year over year. Gross margin was 69.8%, down 50 basis points.
Operating expenses rose 12.3% year over year to $85.9 million. Research and development expenses totaled $13 million, up 4.3% year over year.
Sales, general and administrative expenses were up 13.9% year over year to $72.9 million.
Guidance
Nevro raised its revenue guidance for 2019.
The company now expects revenues in the range of $368-$374 million compared with the previous expectation of $383-$386 million. The Zacks Consensus Estimate for the same is pegged at $375.7 million, above the projected range.
Gross margin is expected in the range of 68-70% as a percentage of revenues.
Summary
Nevro exited the second quarter on a strong note. The company’s domestic and international revenues surged on a year-over-year basis. Also, demand for implants drove the solid quarterly show. The commercial launch of the Senza Omnia SCS System buoys optimism. A raised guidance for 2019 holds promise.
On the flip side, increased operating expenses raise concern. Gross margin contracted in the quarter.
Earnings of Other MedTech Majors at a Glance
Some better-ranked companies, which posted solid results this earnings season, are Edwards Lifesciences (EW - Free Report) , Thermo Fisher Scientific Inc (TMO - Free Report) and ResMed Inc (RMD - Free Report) . Each stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Edwards Lifesciences delivered third-quarter 2019 adjusted earnings per share (EPS) of $1.41, which outpaced the Zacks Consensus Estimate by 15.6%. Net sales of $1.09 billion surpassed the Zacks Consensus Estimate by 5.5%.
Thermo Fisher delivered third-quarter 2019 adjusted EPS of $2.94, which surpassed the consensus mark by 2.1%. Revenues of $6.27 billion outpaced the same by 1.3%.
ResMed reported fiscal first-quarter 2020 adjusted EPS of 93 cents, which beat the Zacks Consensus Estimate of 87 cents by 6.9%. Revenues were $681.1 million, which surpassed the Zacks Consensus Estimate by 3.6%.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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