Back to top

Image: Bigstock

Nevro (NVRO) Stock Slips 2.9% Despite Narrower Loss in Q1

Read MoreHide Full Article

Nevro Corp’s (NVRO - Free Report) shares dipped 2.9% on May 6 a day after first-quarter earnings release.

The company reported first-quarter 2021 loss per share of 85 cents, narrower than the Zacks Consensus Estimate of a loss of 86 cents. The bottom line, however, compared unfavorably with the year-ago quarter’s loss per share of 78 cents.

Revenues

Revenues of $88.6 million beat the Zacks Consensus Estimate by 4.1%. The top line also inched up 1% year over year.

Quarterly Highlights

In the quarter under review, international revenues were $13.9 million, up 14% year over year on a reported basis and 4% in constant currency. U.S. revenues for the quarter totaled $74.7 million, down 1% year over year due to 4% decline in implant trial procedures.

Margins

Gross profit totaled $62.3 million, up 2.9% year over year. Gross margin was 70.3%, up 108 basis points (bps).

Total operating expenses rose 1.4% year over year to $84.8 million.

Loss from operations was $22.5 million, narrower than the year-ago quarter’s loss of $23.1 million.

 

Nevro Corp. Price, Consensus and EPS Surprise

Nevro Corp. Price, Consensus and EPS Surprise

 

Nevro Corp. price-consensus-eps-surprise-chart | Nevro Corp. Quote

 

Guidance

Nevro projects second-quarter 2021 global revenues in the range of $104-$106 million. The Zacks Consensus Estimate for the same is pegged at $101.1 million.

For 2021, the company now expects total revenues in the $440-$450 million band, narrowed from the prior guidance of $430-$450 million. This updated guidance indicates 22-24% growth from the prior-year reported figure. The Zacks Consensus Estimate for the same stands at $442.9 million.

Cash Position

The company exited the first quarter of 2021 with cash and cash equivalents of $86.5 million compared with $44.6 million at the end of the fourth quarter of 2020.

Summary

Nevro ended the March quarter on a strong note. The company saw growth in international revenues during the period. Further, the commercial launch of the Senza Omnia SCS System continues to buoy optimism on the stock. Expansion in gross margin is a positive too. The FDA nod for the first major Omnia upgrade and the new Trial Stimulator Module is another plus. However, the company saw weakness in domestic revenues during the first quarter. In the same period, implant trial procedures declined 4% year over year as well. Also, the company incurred an operating loss in the quarter under review.

Zacks Rank and Key Picks

Nevro currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Boston Scientific Corporation (BSX - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) , each currently carrying a Zacks Rank #2 (Buy) .You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.

Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.

HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>