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Nevro (NVRO) Reports Impressive Preliminary Q2 Revenues

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Nevro Corp. (NVRO - Free Report) recently announced preliminary revenues for second-quarter 2021. The company expects to release detailed financial results for the period on Aug 4.

As per the preliminary report, second-quarter 2021 revenues are estimated to be $102.3 million, up by 81% from the year-ago quarter. The Zacks Consensus Estimate of $102.9 million remains above the preliminary figure.

The company, during its first-quarter 2021 earnings release in May, had guided second-quarter 2021 worldwide revenues in the band of $104-$106 million, reflecting growth of 84-88%.

Nevro expects its second-quarter 2021 U.S. revenues to be approximately $85 million, reflecting an uptick of 67% from the prior-year period. International revenues are expected to be around $17.3 million, indicating an improvement of 222% on a reported basis (up 191% at constant exchange rate) compared with the year-ago period.

Following this release on Jul 19, shares of the company were up 1% to close at $151.44 yesterday.

2021 Financial Outlook

On the back of continued pandemic-led uncertainties, Nevro plans to update its guidance for full-year 2021 when it reports full second-quarter financial results.
Nonetheless, the company, during its first-quarter 2021 earnings release, had narrowed its financial outlook for the full-year 2021. It expected full-year 2021 revenues in the band of $440-$450 million, narrower than the previous range of $430-$450 million. This reflects an improvement of 22-24%. The Zacks Consensus Estimate for full-year revenues is currently pegged at $444.1 million.

The company’s expectation of mid-single-digit million revenue contribution in 2021 from Painful Diabetic Neuropathy treatment following its FDA approval of Senza System (which is specific to Nevro's 10 kHz stimulation) looks encouraging.

A Brief Q2 Analysis

Nevro has been observing a slower-than-expected recovery of procedural volumes in the overall pain market and specifically in the spinal cord stimulation market. This, in turn, has adversely impacted not only second-quarter revenues, but also resulted in lower trial procedures, which drove down revenues.

Meanwhile, the company’s preliminary projection of a robust improvement in revenues compared with the sequentially last-reported quarter, lifts our confidence.

Price Performance

Shares of the company have gained 13.1% in the past year compared with the industry’s 11.2% growth and the S&P 500's 31.6% rise.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Currently, Nevro carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , AMN Healthcare Services Inc (AMN - Free Report) and Align Technology, Inc. (ALGN - Free Report) .

Henry Schein’s long-term earnings growth rate is estimated at 11.2%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 6.5%. It currently carries a Zacks Rank #2.

Align Technology’s long-term earnings growth rate is estimated at 23.2%. It currently carries a Zacks Rank #2.

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