What happened
Shares of Nevro (NVRO +0.00%) were down more than 19% as of 3:30 p.m. ET on Wednesday after the company announced second-quarter earnings. The healthcare stock is down more than 49% so far this year.
NYSE: NVRO
Key Data Points
So what
Nevro is a medical device company that focuses on therapies to treat chronic pain. The company's earnings didn't keep up with company guidance or analysts' expectations, and Nevro also lowered full-year guidance. The company reported revenue of $108.8 million, which, while it was up 4% year over year, was lower than the $110 million to $112 million that Nevro had given earlier guidance for. The quarterly revenue figure was also lower than the consensus of $109.33 given by analysts.
The company also said it had a net loss of $24.3 million in the quarter, compared to a net loss of $23.8 million in the same period last year.
On top of that, due to a sales reorganization, the company said it expects full-year revenue to be between $410 million and $415 million, down from earlier guidance of between $445 million and $455 million and up only 1% to 2% over 2022 revenue. It also said it expects third-quarter revenue to be down between 4% to 6% year over year, landing between $95 million and $97 million.
Now what
Three analysts lowered their price targets on the healthcare stock after the earnings report, with JMP Securities dropping its target for Nevro from $75 to $40, Robert W. Baird lowering its target from $26 to $23, and Royal Bank of Canada dropping its target from $39 to $33.
The company acknowledged its reorganization efforts may take time to pay off. Nevro CEO Kevin Thornal, who was appointed in April of this year, said the company will focus on upgrading its sales force, boosting market penetration by expanding indications for its products, and tightening up its efforts at its Costa Rica manufacturing plant.
