What happened

Shares of NuVasive, Inc. (NASDAQ:NUVA) jumped 11.6% higher on Wednesday. The medical-device maker, which focuses on spine-surgery technology, announced its second-quarter earnings results after the market closed on Tuesday.

After posting a GAAP (generally accepted accounting principles) net loss in the first quarter due to a one-time item, NuVasive roared back in Q2. The company's revenue rose 8.5% year over year to $281.6 million. NuVasive reported non-GAAP diluted earnings per share (EPS) of $0.58, a 29% increase from the prior-year period. NuVasive lowered its full-year earnings guidance, however: The company now expects 2018 non-GAAP EPS of between $2.37 and $2.40, compared to its previous guidance of $2.44 to $2.47.

So why did NuVasive's share price move higher instead of falling? Probably because the company has addressed production bottlenecks at its West Carrollton, Ohio, manufacturing facility, and anticipates improved throughput and profitability in 2019 as a result.

Pointing to image of spine on monitor

Image source: Getty Images.

So what

The market's reaction to NuVasive's Q2 earnings update underscores why the future is more important than the past when it comes to investing. NuVasive certainly had a pretty good quarter, with growing revenue and earnings. However, the company met the consensus Wall Street earnings estimate rather than beating it.

Although NuVasive lowered its full-year guidance a little, it appears that investors took the negative revision in stride. That's likely because the company said that it has resolved the issues at its West Carrollton facility that led to the weaker full-year outlook.

While didn't provide any guidance for 2019, the company should be in good position for higher growth then. CFO Rajesh Asarpota stated in the Q2 earnings call that remains on track to achieve an operating margin of 25% -- much higher than the 16.7% margin projected for this year.

Now what

Investors should now be able to look forward to better news from in the months to come. In addition to benefiting from the resolution of its manufacturing facility problems, the company also should begin to see the fruits of the new products it launched from late 2017 onward.

The stock is still a bit pricey, though, with a forward earnings multiple of 23. It's still possible that any hiccups could result in more volatility like this year's. Still, appears to be on the right track now.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends NuVasive. The Motley Fool has a disclosure policy.