NuVasive Goes Red

NuVasive (Nasdaq: NUVA  ) reported earnings on Feb. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NuVasive met expectations on revenues and crushed expectations on earnings per share.

Compared with the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank to a loss.

Margins dropped across the board.

Revenue details
NuVasive chalked up revenue of $150.2 million. The 15 analysts polled by S&P Capital IQ looked for net sales of $149.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $129.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.27. The 22 earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share on the same basis. GAAP EPS were -$0.24 for Q4 compared to $1.50 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 75.3%, 680 basis points worse than the prior-year quarter. Operating margin was 5.6%, 320 basis points worse than the prior-year quarter. Net margin was -6.7%, 5,460 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $142.5 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $614.3 million. The average EPS estimate is $0.97.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 162 members out of 182 rating the stock outperform, and 21 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give NuVasive a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NuVasive is outperform, with an average price target of $24.56.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don''t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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4/17/2014 3:59 PM
NUVA $33.83 Up +0.40 +1.20%
NuVasive CAPS Rating: *****

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