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What: Shares of NuVasive
So what: For the quarter, NuVasive reported a 22% rise in revenue to $151.9 million and an adjusted profit of $0.20. This compares to Wall Street's expectations for an adjusted profit of $0.18 on $143.5 million in sales. NuVasive also reaffirmed its previous revenue and EPS full-year guidance. If there was one negative to report, the company's gross margin fell to 75.7% from 81.1% a year earlier as expenses rose.
Now what: NuVasive's management team seemed pretty pleased with the company's market-share taking results thus far, but I would be more concerned with the falling margins. Although the company kept its full-year forecast unchanged, I'm still not sold on NuVasive at 19 times forward earnings -- especially with costs rising.
Craving more input? Start by adding NuVasive to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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