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Why Is Nevro (NVRO) Up 7.1% 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 7.1% in that time frame, underperforming 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 drivers.
Nevro Earnings and Revenues Beat Estimates in Q1
Nevro Corp 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -26.9% due to these changes.
VGM Scores
At this time, Nevro has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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 7.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Nevro (NVRO - Free Report) . Shares have added about 7.1% in that time frame, underperforming 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 drivers.
Nevro Earnings and Revenues Beat Estimates in Q1
Nevro Corp 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -26.9% due to these changes.
VGM Scores
At this time, Nevro has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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.