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Nevro Stock Falls Despite Q4 Sales Beat on Strong SCS Demand

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Nevro (NVRO - Free Report) recently announced preliminary revenues for fourth-quarter and full year 2024. Investors seem to panic eyeing the preliminary results, as the company’s shares declined nearly 8% at yesterday’s closing.

The company expects to release fourth-quarter results in early March 2025.

Per the preliminary report, fourth-quarter 2024 worldwide revenues are expected to be in the range of $105 million-$106 million, representing a decrease of 9% to 10% on a reported and constant currency basis compared with the fourth quarter of 2023. NVRO expects fourth-quarter 2024 U.S. revenues to be in the range of $91 million-$92 million, representing a decrease of 9% to 10% compared with the fourth quarter of 2023. The Zacks Consensus Estimate of $100 million lies below the preliminary figure.

Per the preliminary report, full-year 2024 worldwide revenues are expected to be in the range of $408 million-$409 million, representing a year-over-year decrease of approximately 4% on a reported and constant currency basis compared with the full-year 2023. Full-year 2024 U.S. revenues are expected to be in the range of $352.5 million-$353.5 million, or an approximately 4% decrease compared with full-year 2023.The Zacks Consensus Estimate of $403.3 million lies below the preliminary figure.

Per the report, cash, cash equivalents and short-term investments are expected to be approximately $292.5 million as of Dec. 31, 2024, an increase of approximately $15.5 million from Sept. 30, 2024.

Per management, the full-year 2024 worldwide revenues are higher than the guidance provided in November 2024 primarily due to the impact of greater-than-anticipated spinal cord stimulation (SCS) device replacement procedures in the fourth quarter of 2024. The company reallocated investments to its direct-to-consumer (DTC) advertising efforts in the third quarter of 2024, and has continued to witness patient interest and response as a result. NVRO anticipates that the benefit from DTC advertising will ramp throughout 2025, with a more meaningful impact in the second half of the year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

A Brief Q4 Analysis of Nevro

During the fourth quarter, NVRO announced the publication of new data demonstrating that Nevro’s SI Joint Fusion System (Nevro1) offers significant advantages over traditional approaches, improving surgical outcomes. This is likely to strengthen Nevro's position in the market, showcasing innovation in spinal procedures and potentially attracting more healthcare professionals and patients, thus benefiting their business and growth prospects.

Also, during the fourth quarter, NVRO received CE Mark Certification in Europe for its HFX iQ SCS system. This is likely to open up opportunities for Nevro to expand its market presence in Europe and globally. The inclusion of AI technology enhances the product’s competitiveness, making it more attractive to healthcare providers and patients, potentially increasing sales.

NVRO also published new data highlighting long-term improvements in pain intensity for patients using its High-Frequency SCS therapy. The study underscores the therapy’s effectiveness in delivering sustained relief for individuals with chronic pain, reinforcing its clinical benefits and positioning Nevro as a leader in pain management. This positive outcome supports the continued adoption of Nevro's innovative treatments.

NVRO’s Price Performance

Shares of the company have lost 27.1% in the past three months against the industry’s 0.2% growth. The S&P 500 has gained 0.8% during the same time frame.

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Nevro’s Zacks Rank & Key Picks

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

Some better-ranked stocks in the broader medical space are Masimo (MASI - Free Report) , ResMed (RMD - Free Report) and Abbott Laboratories (ABT - Free Report) .

Masimo, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 31.7% against the industry’s 1% decline in the past six months.

ResMed, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 21.1% for 2025.

ResMed’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.41%. Its shares have risen 31.6% against the industry’s 12.8% decline in the past year.

Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.

ABT’s shares have risen 8.5% in the past six months compared with the industry’s 7.2% growth.


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