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What's happening: Shares of NxStage Medical (NASDAQ:NXTM), a developer of medical devices used to treat kidney failure and other blood-related treatments, surged higher by as much as 13% after reporting better than expected third-quarter earnings results before the opening bell.

Why it's happening: For the quarter, NxStage Medical reported a 13% increase in revenue to a record $75.3 million, which happened to be higher than the prior guidance issued by the company of $71 million-$72.5 million issued during its second-quarter earnings release. NxStage specifically cites the rapid adoption of its NxStage System One hemodialysis machine at home, in both domestic and international markets, as the reason for its revenue surge. Overall, home revenue rose 20% year over year to $40.4 million, with critical care revenue also jumping 24% year over year to $13.3 million.

Net loss for the quarter totaled $6.7 million, or $0.11 per share, which was a bit wider than the $5 million net loss, or $0.08 per share, it reported in the year-ago quarter. However, the net loss was also smaller than the company's prior guidance and did include $4.1 million in losses associated with the "market development activities" associated with its NsStage Kidney Care. Comparatively speaking, Wall Street had been expecting just $71.8 million in revenue and a loss of $0.13 per share.

Furthermore, NxStage boosted its prior full-year sales guidance to a fresh range of $296 million-$298 million (prior: $290 million-$293 million), and narrowed its full-year loss estimate to $24 million-$26 million (prior: $23 million-$27 million). By comparison, the consensus on Wall Street had been calling for only $292.2 million in revenue for the full year.