NuVasive
The 10-second takeaway
For the quarter ended June 30 (Q2), NuVasive met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Revenue details
NuVasive chalked up revenue of $154.4 million. The 22 analysts polled by S&P Capital IQ expected to see a top line of $154.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $133.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.27. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.23 per share. GAAP EPS of $0.06 for Q2 were 54% lower than the prior-year quarter's $0.13 per share.
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 76.3%, 450 basis points worse than the prior-year quarter. Operating margin was 8.4%, 20 basis points worse than the prior-year quarter. Net margin was 1.9%, 210 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $153.6 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $623.0 million. The average EPS estimate is $0.95.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 162 members out of 181 rating the stock outperform, and 19 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give NuVasive a green thumbs-up, and three 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 $24.16.
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