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Nevro (NVRO) Earnings and Revenues Beat Estimates in Q1

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Nevro Corp (NVRO - Free Report) reported first-quarter 2020 loss of 78 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.03. The company had incurred a loss of $1.45 in the year-ago quarter.

The company posted revenues of $87.5 million, which surpassed the Zacks Consensus Estimate by 0.9%. The figure also rose 6.6% year over year.

Quarter Highlights

In the quarter under review, international revenues were $12.2 million, down 26% year over year and 23% at constant currency.This was owing to the impact of COVID-19-related government restrictions on elective procedures implemented in Europe and Australia during the second half of the first quarter.

U.S. revenues for the quarter totaled $75.3 million, up 14% year over year. Per management, revenues gained from 7% year-over-year growth in U.S. trials and 12% increase in permanent implant.

Nevro Corp Price, Consensus and EPS Surprise

 

Nevro Corp Price, Consensus and EPS Surprise

Nevro Corp price-consensus-eps-surprise-chart | Nevro Corp Quote

Margins

Gross profit totaled $60.5 million, up 13.8% year over year. Gross margin was 69.2%, up 445 basis points.

Total operating expenses fell 12.4% year over year to $83.6 million. Research and development expenses totaled $12.2 million, down 13.6%.

Sales, general and administrative expenses fell 12.2% to $71.4 million.

Loss from operations was $23.1 million, narrower than the year-ago quarter’s loss of $42.3 million.

Guidance

Due to the economic uncertainties resulting from COVID-19, Nevro withdrew its annual guidance for 2020 on Apr 1. 

Summary

Nevro exited the first quarter on a strong note. The company’s domestic revenues improved on a year-over-year basis. Also, demand for implants contributed to the solid quarterly show. The commercial launch of the Senza Omnia SCS System continues to buoy optimism. Expansion in gross margin is encouraging.

On the flip side, decline in international revenues during the quarter raises concern.

Zacks Rank and Key Picks

Nevro currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents, comparing favorably with the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present.

Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.

Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.

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