Why NuVasive Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of medical device company NuVasive (NASDAQ: NUVA  ) climbed 10% today after its preliminary results and guidance topped Wall Street expectations.

So what: NuVasive shares were slaughtered in early October on fears that lower-priced rivals were rapidly stealing market share, but today's preliminary 2012 results -- revenue of $619 million versus its prior view of $601 million-$606 million -- coupled with upbeat guidance for 2013 suggest that management's turnaround plan is working. The company cited a range of new products and geographic expansion for the bright outlook, giving investors some much-needed optimism over its growth prospects going forward.

Now what: Management now sees 2013 revenue of $655 million, nicely ahead of the consensus estimate of $638 million. "We anticipate that our market share taking strategy and momentum can be sustained in 2013," Chairman and CEO Alex Lukianov said. "The entire NuVasive family remains laser focused on changing spine surgery with innovative solutions and executing our market share taking strategy to fuel growth at several multiples of the industry while improving operating profitability."

More important, with the stock still down more than 30% from its 52-week highs, there's probably plenty of room left to buy into that bullishness.

What's inside Supernova?
If you're an investor looking for big long-term winners, Motley Fool co-founder David Gardner's picks have frequently trounced the market. How? Because he's always on the lookout for revolutionary stocks and recommends them before Wall Street catches on to their disruptive potential. If you're interested in how David discovers his winners, click here to get instant access to a personal tour behind David's Supernova service.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2187105, ~/Articles/ArticleHandler.aspx, 10/22/2014 4:04:32 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement