Shares of NuVasive, Inc. (NASDAQ: NUVA), a market leader in spine-related medical technology, skidded 10.1% in early morning trading and has since recovered somewhat. As of 2:10 p.m. EST, they were off by 7% as investors digested the preliminary 2017 results management released this morning.
Rather than wait for independent auditors to give their blessing, NuVasive opened the books just wide enough to share top-line results for 2017 and expectations for 2018. The company expects last year's revenue to fall in line with guidance provided in the company's third-quarter report.
Falling U.S. sales continue to be offset by a red-hot international segment. In fact, the international segment reported its fifth consecutive quarter of year-over-year gains in excess of 20%. In 2017, total revenue grew about 7%, and the company expects adjusted EBITDA to fall in a range between $290 million to $300 million.
Though NuVasive didn't share a specific total revenue figure, at the low end of its adjusted EBITDA estimate, it looks like management smashed through its margin expansion goal. That's good news for a company that's reached a saturation point in the vital U.S. market.
NuVasive expects its effective tax rate to settle around 33% for 2017. Now that corporate tax reform is a done deal, there will be a lot more profit to fuel share repurchases going forward.