The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NuVasive met expectations on revenues and crushed expectations on earnings per share.
Compared with the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
NuVasive chalked up revenue of $150.2 million. The 15 analysts polled by S&P Capital IQ looked for net sales of $149.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $129.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.27. The 22 earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share on the same basis. GAAP EPS were -$0.24 for Q4 compared to $1.50 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.3%, 680 basis points worse than the prior-year quarter. Operating margin was 5.6%, 320 basis points worse than the prior-year quarter. Net margin was -6.7%, 5,460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $142.5 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $614.3 million. The average EPS estimate is $0.97.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 162 members out of 182 rating the stock outperform, and 21 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give NuVasive a green thumbs-up, and five 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 $24.56.
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