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Why Is Nevro (NVRO) Down 6.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Nevro (NVRO - Free Report) . Shares have lost about 6.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Nevro due for a breakout? 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 Q1 Loss Narrower Than Estimated, Revenues Beat
Nevro Corp 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -8.64% due to these changes.
VGM Scores
Currently, Nevro has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Nevro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Nevro (NVRO) Down 6.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Nevro (NVRO - Free Report) . Shares have lost about 6.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Nevro due for a breakout? 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 Q1 Loss Narrower Than Estimated, Revenues Beat
Nevro Corp 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -8.64% due to these changes.
VGM Scores
Currently, Nevro has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Nevro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.