NuVasive slides on Q3 sales & earnings miss

NuVasive (NSDQ:NUVA) shares took a hit today after the spinal orthopedics company yesterday posted 3rd-quarter sales and earnings that missed the consensus forecast on Wall Street.

San Diego-based NuVasive posted profits of $3.9 million, or 7¢ per share, on sales of $239.6 million for the 3 months ended Sept. 30, for a -69.7% bottom-line slide despite sales growth of 19.5% compared with Q3 2015.

Adjusted to exclude 1-time items, earnings per share were 40¢, a penny below The Street, where analysts were looking for sales of $243.8 million.

Investors punished the company today by cutting its share price by -8.4% to $59.90 per share in mid-day trading.

“Our results for the 3rd quarter reflect continued strength in procedural volumes across the U.S., as well as strong performances in our European and Australian markets,” chairman & CEO Gregory Lucier said in prepared remarks. “While our revenue results for the quarter were lower than our expectations due to capital and stocking orders in the U.S. that did not come through late in the quarter as planned, we believe this minor disruption is temporary. During the quarter, we continued to experience positive trends, including domestic procedural volumes in line with prior quarters and the conversion of surgeons at an increasingly faster pace, signaling stable market trends and competitive dynamics that favor our innovation and spine-only focused strategy.

“As anticipated, our results were also impacted by our dilator being off the market in Japan for a large portion of the quarter, which resulted in lower XLIF revenues. If XLIF procedures in Japan had been performed at their normal pace, the underlying revenue growth rate of our core business would have been in the mid-to-high single digits. We have resubmitted our dilator for approval with the Japanese Ministry of Health, and to be prudent, we have updated our financial guidance to reflect the removal of XLIF revenues in Japan for the 4th quarter,” Lucier said.

NuVasive cut its full-year revenues outlook to $952.0 million from prior guidance of $962.0 million, but held steady on its adjusted EPS forecast of $1.64.

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