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What's happening: Shares of Nxstage Medical (NASDAQ:NXTM), a medical device maker focused on kidneys, soared as much as 13% in early session trading after the company reported better-than-expected second quarter results and provided guidance that was either above or at the high-end of what the Street was expecting. As of 2:30pm ET shares had settled into gains of nearly 7%.

Why it's happening: For the quarter, Nxstage Medical reported revenue of $80.3 million, an 8% increase from Q2 2014. The primary drivers of Nxstage's business growth were its critical care segment, which saw an 18% increase in sales to $14.6 million, and home health revenue which grew 16% to $44.8 million from the year-ago quarter. The one red mark was the company's in-center segment, which sells blood tubing sets and needles for hemodialysis patients, which saw sales decline by 11% to $18.6 million.

Net loss for the quarter shrank to $5.3 million from $7.1 million in the year-ago period, and it surpassed management's previous guidance that had called for a loss of $5.5 million to $7 million. All told, Nxstage Medical's Q2 loss of $0.08 per share was $0.02 narrower than expected, and its revenue was just a hair higher than expected.

Looking ahead, Nxstage Medical sees Q3 revenue in a range of $82 million to $83 million with a net loss in the range of $4.5 million to $5.5 million. For the full-year it maintained its sales guidance of $324 million to $328 million, but now expects to hit the high end of that estimate. The company also lowered its expected full-year loss to a range of $18 million to $20 million from a previous forecast that called for a full-year loss of $20 million to $24 million.

Sean Williams has no position in any stocks mentioned. The Motley Fool recommends NxStage Medical. 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.