The 10-second takeaway
For the quarter ended March 31 (Q1), NuVasive beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Gross margins dropped, operating margins expanded, and net margins contracted.
NuVasive recorded revenue of $151.7 million. The 21 analysts polled by S&P Capital IQ expected a top line of $143.5 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $124.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.20. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.02 for Q1 were 67% lower than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.7%, 540 basis points worse than the prior-year quarter. Operating margin was 4.8%, 110 basis points better than the prior-year quarter. Net margin was 0.4%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $153.5 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $616.5 million. The average EPS estimate is $0.93.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 158 members out of 178 rating the stock outperform, and 20 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give NuVasive a green thumbs-up, and six 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 $21.53.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.