NuVasive
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), NuVasive beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins shrank, operating margins increased, net margins grew.
Revenue details
NuVasive reported revenue of $148.4 million. The 17 analysts polled by S&P Capital IQ predicted a top line of $146.1 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $132.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.23. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS were $0.05 for Q3 compared to -$1.69 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 74.6%, 580 basis points worse than the prior-year quarter. Operating margin was 8.5%, 80 basis points better than the prior-year quarter. Net margin was 1.6%, 5,240 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $156.2 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $609.2 million. The average EPS estimate is $0.89.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 174 members out of 194 rating the stock outperform, and 20 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give NuVasive a green thumbs-up, and three 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 $26.70.
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