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Nevro's (NVRO) Preliminary Q4 Revenues Solid, Issues '23 Outlook
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Nevro Corp. (NVRO - Free Report) recently announced preliminary revenues for the fourth quarter and full-year 2022. The robust preliminary results drove up the shares of the company by 0.1% in the after-hours trading session.
The company is scheduled to release fourth-quarter results on Feb 16 after the closing bell.
Per the preliminary report, fourth-quarter 2022 worldwide revenues are estimated to be $113.8 million, reflecting an increase of 11% year over year on a reported basis. The Zacks Consensus Estimate of $113.2 million lies below the preliminary figure.
At constant exchange rate (CER), fourth-quarter worldwide revenues are estimated to reflect an uptick of 12% year over year.
The company’s Painful Diabetic Neuropathy (PDN) revenues represented approximately $17.3 million in revenue and 16% of worldwide permanent implant procedures in the fourth quarter of 2022.
The U.S. revenue in the to-be-reported quarter is expected to be $99.8 million, reflecting growth of 13% from the prior-year period. U.S. trial procedures in the fourth quarter were up approximately 9% year over year. In the fourth quarter, the U.S. PDN trial procedures represented approximately 20% of the total U.S. trial volume and improved 15% sequentially.
International revenues in the fourth quarter are expected to be $14.1 million, reflecting a decrease of 2% on a reported basis year over year. At CER, it increased 9% compared with the prior-year period.
Per management, the limited market release of the HFX iQ system continues to progress well, and the company continues to anticipate a full-market launch in early 2023 with a meaningful shift in mix to the HFX iQ product following the full-market launch. Thus, it expects to incur certain operational costs during the fourth quarter.
Full-Year Prelim Results
Per Nevro, its full-year worldwide revenues are likely to be $406.4 million, reflecting an increase of 5% over comparable 2021 figures on a reported basis. The Zacks Consensus Estimate of $405.2 million lies below the preliminary figure.
At CER, worldwide revenues are estimated to reflect an uptick of 7% over comparable 2021 reported figures.
2023 Guidance
Nevro has initiated its financial outlook for the full-year 2023.
The company anticipates its worldwide revenues to be within $445 million-$455 million, representing an expected growth of approximately 10-12% over comparable 2022 reported figures.
PDN revenues are estimated to be within $75 million-$85 million, reflecting an improvement of 56-77% over comparable 2022 reported figures.
Per management, the outlook for 2023 indicates that Nevro would witness a steady recovery and includes no significant business impact from new COVID-19 variants or waves and related impacts on patient willingness to seek elective care and near-term improvement in healthcare facility restrictions and steady improvement in healthcare facility staffing limitations.
A Brief Q4 Analysis
Nevro’s management’s confirmation about continued signs of business recovery, which it expects to continue throughout 2023, looks promising. Management further continued that the limited launch of the company’s new HFX iQ system has been well received and Nevro looks forward to proceed with the first AI-driven spinal cord stimulation (SCS) therapy that brings personalized relief to patients. This further raises our optimism.
During the third-quarter earnings call in November 2022, management stated that it continued to see a gradual overall trend of SCS market recovery, which it expects to continue in the fourth quarter and throughout 2023. The progress made by the company’s PDN launch also looks encouraging for the fourth quarter, feels management.
Robust adoption of the company’s products is also likely to have driven the fourth-quarter revenues.
The company’s preliminary projection of robust improvement in revenues on the back of strength in its business lifts our confidence in the stock.
Price Performance
Shares of the company have lost 15% between Oct 1, 2022 and Dec 31, 2022 against the industry’s 14.1% rise and the S&P 500’s 6.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Nevro carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
AMN Healthcare has lost 2.9% against the industry’s 4.9% rise between Oct 1, 2022 and Dec 31, 2022.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 15.3% compared with the industry’s 12.5% rise between Oct 1, 2022 and Dec 31, 2022.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 24.9% compared with the industry’s 12.5% rise between Oct 1, 2022 and Dec 31, 2022.
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Nevro's (NVRO) Preliminary Q4 Revenues Solid, Issues '23 Outlook
Nevro Corp. (NVRO - Free Report) recently announced preliminary revenues for the fourth quarter and full-year 2022. The robust preliminary results drove up the shares of the company by 0.1% in the after-hours trading session.
The company is scheduled to release fourth-quarter results on Feb 16 after the closing bell.
Per the preliminary report, fourth-quarter 2022 worldwide revenues are estimated to be $113.8 million, reflecting an increase of 11% year over year on a reported basis. The Zacks Consensus Estimate of $113.2 million lies below the preliminary figure.
At constant exchange rate (CER), fourth-quarter worldwide revenues are estimated to reflect an uptick of 12% year over year.
The company’s Painful Diabetic Neuropathy (PDN) revenues represented approximately $17.3 million in revenue and 16% of worldwide permanent implant procedures in the fourth quarter of 2022.
The U.S. revenue in the to-be-reported quarter is expected to be $99.8 million, reflecting growth of 13% from the prior-year period. U.S. trial procedures in the fourth quarter were up approximately 9% year over year. In the fourth quarter, the U.S. PDN trial procedures represented approximately 20% of the total U.S. trial volume and improved 15% sequentially.
International revenues in the fourth quarter are expected to be $14.1 million, reflecting a decrease of 2% on a reported basis year over year. At CER, it increased 9% compared with the prior-year period.
Per management, the limited market release of the HFX iQ system continues to progress well, and the company continues to anticipate a full-market launch in early 2023 with a meaningful shift in mix to the HFX iQ product following the full-market launch. Thus, it expects to incur certain operational costs during the fourth quarter.
Full-Year Prelim Results
Per Nevro, its full-year worldwide revenues are likely to be $406.4 million, reflecting an increase of 5% over comparable 2021 figures on a reported basis. The Zacks Consensus Estimate of $405.2 million lies below the preliminary figure.
At CER, worldwide revenues are estimated to reflect an uptick of 7% over comparable 2021 reported figures.
2023 Guidance
Nevro has initiated its financial outlook for the full-year 2023.
The company anticipates its worldwide revenues to be within $445 million-$455 million, representing an expected growth of approximately 10-12% over comparable 2022 reported figures.
PDN revenues are estimated to be within $75 million-$85 million, reflecting an improvement of 56-77% over comparable 2022 reported figures.
Per management, the outlook for 2023 indicates that Nevro would witness a steady recovery and includes no significant business impact from new COVID-19 variants or waves and related impacts on patient willingness to seek elective care and near-term improvement in healthcare facility restrictions and steady improvement in healthcare facility staffing limitations.
A Brief Q4 Analysis
Nevro’s management’s confirmation about continued signs of business recovery, which it expects to continue throughout 2023, looks promising. Management further continued that the limited launch of the company’s new HFX iQ system has been well received and Nevro looks forward to proceed with the first AI-driven spinal cord stimulation (SCS) therapy that brings personalized relief to patients. This further raises our optimism.
During the third-quarter earnings call in November 2022, management stated that it continued to see a gradual overall trend of SCS market recovery, which it expects to continue in the fourth quarter and throughout 2023. The progress made by the company’s PDN launch also looks encouraging for the fourth quarter, feels management.
Robust adoption of the company’s products is also likely to have driven the fourth-quarter revenues.
The company’s preliminary projection of robust improvement in revenues on the back of strength in its business lifts our confidence in the stock.
Price Performance
Shares of the company have lost 15% between Oct 1, 2022 and Dec 31, 2022 against the industry’s 14.1% rise and the S&P 500’s 6.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Nevro carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has lost 2.9% against the industry’s 4.9% rise between Oct 1, 2022 and Dec 31, 2022.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 15.3% compared with the industry’s 12.5% rise between Oct 1, 2022 and Dec 31, 2022.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 24.9% compared with the industry’s 12.5% rise between Oct 1, 2022 and Dec 31, 2022.