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Nevro (NVRO) Up 15.7% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Nevro (NVRO - Free Report) . Shares have added about 15.7% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Nevro Q3 Earnings Top Estimates, FY23 Revenue View Up
Nevro reported a loss per share of 65 cents for the third quarter of 2023, against the year-ago quarter’s earnings per share of $2.22. However, the loss per share was narrower than the Zacks Consensus Estimate of a loss of 77 cents.
Revenues in Detail
Nevro registered worldwide revenues of $103.9 million in the third quarter, up 3.4% year over year on a reported basis. The figure topped the Zacks Consensus Estimate by 7.8%.
At constant exchange rate (CER), revenues were up 3% year over year.
PDN indication sales represented approximately $20.8 million (20%) of worldwide permanent implant procedures and increased 56% year over year.
Quarterly Highlights
In the quarter under review, international revenues were $14.1 million, down 1.4% year over year on a reported basis and 6% at CER.
U.S. revenues for the quarter totaled $89.8 million, up 4.3% year over year.
Total U.S. permanent implant procedures increased 7%, while U.S. trial procedures increased 4%. U.S. PDN trial procedures, representing approximately 24% of total U.S. trial volume, jumped 41% from the prior-year quarter.
Margin Trend
In the quarter under review, Nevro’s gross profit rose 0.3% to $69.5 million. However, the gross margin contracted 205 basis points to 66.9%.
Sales, general & administrative expenses increased 3.8% to $81.2 million. R&D expenses decreased 0.8% year over year to $13.9 million. Total adjusted operating expenses of $95.1 million increased 3.1% year over year.
The total adjusted operating loss in the reported quarter totaled $25.6 million compared with a total adjusted operating loss of $22.9 million in the year-ago quarter.
Financial Position
Nevro exited the third quarter of 2023 with cash and cash equivalents and short-term investments of $320.3 million compared with $329.9 million at the end of the second quarter. Long-term debt at the end of third-quarter 2023 was $187.8 million compared with $187.5 million at the second-quarter end.
As of Sep 30, 2023, 36,869,962 shares were issued and 36,187,046 shares were outstanding.
Cumulative net cash used in operating activities at the end of third-quarter 2023 was $49.9 million compared with cumulative net cash provided by operating activities of $38.1 million a year ago.
Guidance
Nevro has provided its financial outlook for the fourth quarter and raised its financial outlook for 2023.
For the fourth quarter, Nevro expects its worldwide revenues to be in the range of $108 million-$110 million, reflecting a decline of 4-6% year over year at CER. The Zacks Consensus Estimate is pegged at $110.9 million.
The company now expects its 2023 worldwide revenues in the range of $417 million-$419 million, reflecting growth of 3% from the comparable figure of 2022 both on a reported basis and at CER. This is up from the prior outlook of $410 million-$415 million, reflecting growth of 1-2% from the comparable figure of 2022 both on a reported basis and at CER. The Zacks Consensus Estimate is pegged at $412.4 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 11.32% 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. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Nevro has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Nevro belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, DexCom (DXCM - Free Report) , has gained 23.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
DexCom reported revenues of $975 million in the last reported quarter, representing a year-over-year change of +26.7%. EPS of $0.50 for the same period compares with $0.28 a year ago.
For the current quarter, DexCom is expected to post earnings of $0.42 per share, indicating a change of +23.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for DexCom. Also, the stock has a VGM Score of B.
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Nevro (NVRO) Up 15.7% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Nevro (NVRO - Free Report) . Shares have added about 15.7% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Nevro Q3 Earnings Top Estimates, FY23 Revenue View Up
Nevro reported a loss per share of 65 cents for the third quarter of 2023, against the year-ago quarter’s earnings per share of $2.22. However, the loss per share was narrower than the Zacks Consensus Estimate of a loss of 77 cents.
Revenues in Detail
Nevro registered worldwide revenues of $103.9 million in the third quarter, up 3.4% year over year on a reported basis. The figure topped the Zacks Consensus Estimate by 7.8%.
At constant exchange rate (CER), revenues were up 3% year over year.
PDN indication sales represented approximately $20.8 million (20%) of worldwide permanent implant procedures and increased 56% year over year.
Quarterly Highlights
In the quarter under review, international revenues were $14.1 million, down 1.4% year over year on a reported basis and 6% at CER.
U.S. revenues for the quarter totaled $89.8 million, up 4.3% year over year.
Total U.S. permanent implant procedures increased 7%, while U.S. trial procedures increased 4%. U.S. PDN trial procedures, representing approximately 24% of total U.S. trial volume, jumped 41% from the prior-year quarter.
Margin Trend
In the quarter under review, Nevro’s gross profit rose 0.3% to $69.5 million. However, the gross margin contracted 205 basis points to 66.9%.
Sales, general & administrative expenses increased 3.8% to $81.2 million. R&D expenses decreased 0.8% year over year to $13.9 million. Total adjusted operating expenses of $95.1 million increased 3.1% year over year.
The total adjusted operating loss in the reported quarter totaled $25.6 million compared with a total adjusted operating loss of $22.9 million in the year-ago quarter.
Financial Position
Nevro exited the third quarter of 2023 with cash and cash equivalents and short-term investments of $320.3 million compared with $329.9 million at the end of the second quarter. Long-term debt at the end of third-quarter 2023 was $187.8 million compared with $187.5 million at the second-quarter end.
As of Sep 30, 2023, 36,869,962 shares were issued and 36,187,046 shares were outstanding.
Cumulative net cash used in operating activities at the end of third-quarter 2023 was $49.9 million compared with cumulative net cash provided by operating activities of $38.1 million a year ago.
Guidance
Nevro has provided its financial outlook for the fourth quarter and raised its financial outlook for 2023.
For the fourth quarter, Nevro expects its worldwide revenues to be in the range of $108 million-$110 million, reflecting a decline of 4-6% year over year at CER. The Zacks Consensus Estimate is pegged at $110.9 million.
The company now expects its 2023 worldwide revenues in the range of $417 million-$419 million, reflecting growth of 3% from the comparable figure of 2022 both on a reported basis and at CER. This is up from the prior outlook of $410 million-$415 million, reflecting growth of 1-2% from the comparable figure of 2022 both on a reported basis and at CER. The Zacks Consensus Estimate is pegged at $412.4 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 11.32% 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. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Nevro has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Nevro belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, DexCom (DXCM - Free Report) , has gained 23.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
DexCom reported revenues of $975 million in the last reported quarter, representing a year-over-year change of +26.7%. EPS of $0.50 for the same period compares with $0.28 a year ago.
For the current quarter, DexCom is expected to post earnings of $0.42 per share, indicating a change of +23.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for DexCom. Also, the stock has a VGM Score of B.