A month has gone by since the last earnings report for Nevro (NVRO - Free Report) . Shares have added about 1.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nevro due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Nevro Q3 Loss Narrower than Expected, Revenues Beat
Nevro Corp reported loss per share of 29 cents, narrower than the Zacks Consensus Estimate of a loss of 59 cents. The company had incurred loss per share of 58 cents in the year-ago quarter.
Revenues of $108.5 million surpassed the Zacks Consensus Estimate by 4.2%. The figure also grew 8.3% year over year.
Quarter Highlights
In the quarter under review, international revenues were $17.5 million, up 10% year over year on a reported basis and 5% at constant currency. A successful Omnia unveiling, higher patient and customer activity, and rebound in customer inventory levels (on a sequential basis) contributed to the improvement.
U.S. revenues for the quarter totaled $90.9 million, up 35% year over year. Per management, this upside was driven by an increase in patient and customer activity, especially growth in the number of U.S. permanent implants.
Margins
Gross profit totaled $76.1 million, up 8.8% year over year. Gross margin was 70.1%, up 32 basis points (bps).
Total operating expenses fell 7.3% year over year to $79.6 million.
Loss from operations was $3.5 million, narrower than the year-ago quarter’s loss of $15.9 million.
Guidance
Due to the continued economic uncertainties resulting from COVID-19, Nevro has not issued any guidance for 2020.
Cash Position
The company exited the third quarter with cash and cash equivalents of $118.6 million, compared with $276.5 million at the end of the second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 14.64% due to these changes.
VGM Scores
At this time, Nevro has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Nevro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
A month has gone by since the last earnings report for Nevro (NVRO - Free Report) . Shares have added about 1.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nevro due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Nevro Q3 Loss Narrower than Expected, Revenues Beat
Nevro Corp reported loss per share of 29 cents, narrower than the Zacks Consensus Estimate of a loss of 59 cents. The company had incurred loss per share of 58 cents in the year-ago quarter.
Revenues of $108.5 million surpassed the Zacks Consensus Estimate by 4.2%. The figure also grew 8.3% year over year.
Quarter Highlights
In the quarter under review, international revenues were $17.5 million, up 10% year over year on a reported basis and 5% at constant currency. A successful Omnia unveiling, higher patient and customer activity, and rebound in customer inventory levels (on a sequential basis) contributed to the improvement.
U.S. revenues for the quarter totaled $90.9 million, up 35% year over year. Per management, this upside was driven by an increase in patient and customer activity, especially growth in the number of U.S. permanent implants.
Margins
Gross profit totaled $76.1 million, up 8.8% year over year. Gross margin was 70.1%, up 32 basis points (bps).
Total operating expenses fell 7.3% year over year to $79.6 million.
Loss from operations was $3.5 million, narrower than the year-ago quarter’s loss of $15.9 million.
Guidance
Due to the continued economic uncertainties resulting from COVID-19, Nevro has not issued any guidance for 2020.
Cash Position
The company exited the third quarter with cash and cash equivalents of $118.6 million, compared with $276.5 million at the end of the second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 14.64% due to these changes.
VGM Scores
At this time, Nevro has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Nevro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on NVRO - FREE