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Why Is Nevro (NVRO) Up 8.6% 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 added about 8.6% in that time frame, outperforming 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 catalysts.
Nevro Q2 Earnings Surpass Estimates, Revenues Lag
Nevro’s reported loss per share of 62 cents for the second quarter of 2021, narrower than the loss of $1.21 reported in the year-ago quarter. Loss per share was also narrower than the Zacks Consensus Estimate of a loss of 71 cents.
Revenues in Detail
Nevro registered revenues of $102.3 million in the second quarter, up 81.5% year over year. The figure but lagged the Zacks Consensus Estimate by 2.1%.
At CER, revenues improved 80% year over year. On a sequential basis, second-quarter revenues improved 15%.
Quarterly Highlights
In the quarter under review, international revenues were $17.3 million, up 222% year over year on a reported basis and 191% at CER. Despite this stupendous revenue uptick, the international business continued to be adversely impacted by pandemic-led issues, including both patient behavior and healthcare facility restrictions.
U.S. revenues for the quarter totaled $85 million, up 67% year over year. Total U.S. permanent implant procedures during the reported quarter increased 60% while trial procedures rose 45%. Despite an improvement in revenues, trial and permanent implant volumes were primarily affected by a persistent reluctance of new patients to seek interventional therapies for chronic pain compared with the pre-pandemic levels.
Margin Trend
In the quarter under review, Nevro’s gross profit rose 98.5% to $69.9 million. Gross margin expanded 588 basis points (bps) to 68.4%.
Sales, general & administrative expenses rose 22.8% to $73.9 million. Research and development expenses went up 13.6% year over year to $11.9 million. Total operating expenses of $85.7 million increased 21.4% year over year.
Operating loss in the reported quarter totaled $15.8 million compared with the total operating loss of $35.4 million in the year-ago quarter.
Financial Position
Nevro exited the second quarter of 2021 with cash and cash equivalents, and short-term investments of $397.5 million compared with $576.4 million at the end of the first quarter. Total debt (including short-term debt) at the end of the second quarter of 2021 was $146.4 million compared with $315 million at the end of the first quarter.
Guidance
Due to continued pandemic-led uncertainties, Nevro provided its financial outlook for the third quarter of 2021 only and withdrew its previously provided full-year guidance.
The company projects third-quarter 2021 global revenues in the range of $90-$93million, indicating a 14-17% decrease from the comparable numbers reported in the prior year. The Zacks Consensus Estimate for the same is pegged at $116.8 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -56.36% due to these changes.
VGM Scores
At this time, Nevro has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 D. 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) Up 8.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Nevro (NVRO - Free Report) . Shares have added about 8.6% in that time frame, outperforming 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 catalysts.
Nevro Q2 Earnings Surpass Estimates, Revenues Lag
Nevro’s reported loss per share of 62 cents for the second quarter of 2021, narrower than the loss of $1.21 reported in the year-ago quarter. Loss per share was also narrower than the Zacks Consensus Estimate of a loss of 71 cents.
Revenues in Detail
Nevro registered revenues of $102.3 million in the second quarter, up 81.5% year over year. The figure but lagged the Zacks Consensus Estimate by 2.1%.
At CER, revenues improved 80% year over year. On a sequential basis, second-quarter revenues improved 15%.
Quarterly Highlights
In the quarter under review, international revenues were $17.3 million, up 222% year over year on a reported basis and 191% at CER. Despite this stupendous revenue uptick, the international business continued to be adversely impacted by pandemic-led issues, including both patient behavior and healthcare facility restrictions.
U.S. revenues for the quarter totaled $85 million, up 67% year over year. Total U.S. permanent implant procedures during the reported quarter increased 60% while trial procedures rose 45%. Despite an improvement in revenues, trial and permanent implant volumes were primarily affected by a persistent reluctance of new patients to seek interventional therapies for chronic pain compared with the pre-pandemic levels.
Margin Trend
In the quarter under review, Nevro’s gross profit rose 98.5% to $69.9 million. Gross margin expanded 588 basis points (bps) to 68.4%.
Sales, general & administrative expenses rose 22.8% to $73.9 million. Research and development expenses went up 13.6% year over year to $11.9 million. Total operating expenses of $85.7 million increased 21.4% year over year.
Operating loss in the reported quarter totaled $15.8 million compared with the total operating loss of $35.4 million in the year-ago quarter.
Financial Position
Nevro exited the second quarter of 2021 with cash and cash equivalents, and short-term investments of $397.5 million compared with $576.4 million at the end of the first quarter. Total debt (including short-term debt) at the end of the second quarter of 2021 was $146.4 million compared with $315 million at the end of the first quarter.
Guidance
Due to continued pandemic-led uncertainties, Nevro provided its financial outlook for the third quarter of 2021 only and withdrew its previously provided full-year guidance.
The company projects third-quarter 2021 global revenues in the range of $90-$93million, indicating a 14-17% decrease from the comparable numbers reported in the prior year. The Zacks Consensus Estimate for the same is pegged at $116.8 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -56.36% due to these changes.
VGM Scores
At this time, Nevro has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 D. 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.