NuVasive posts mixed bag Q3

NuVasive (NSDQ:NUVA) today released third quarter earnings that beat Wall Street expectations for revenue but missed on earnings per share consensus.

The San Diego-based company posted profits of $15.9 million, or 56¢ per share, on sales of $271.3 million for the three months ended September 30, seeing profits shrink 52.5% while sales grew 9.8% compared with the same period last year.

Adjusted to exclude one-time items, earnings per share were 56¢, just behind the 62¢ consensus on The Street, where analysts were looking for sales of $265.4 million.

“Our third quarter results reflect accelerated year-over-year revenue growth of nearly 10%, supported by strong performances in both spinal hardware and surgical support business lines with overall U.S. case volumes up more than 7%. With the sense the overall U.S. spine market is trending healthier, we made strategic investments this quarter on the heels of this momentum in key R&D initiatives, additions to our commercial sales force and infrastructure upgrades to improve set fulfillment—all to support a strong start to 2019 and beyond. We made solid progress with our in-source manufacturing initiatives by bringing in additional SKUs during the third quarter with throughput ramping to higher volumes. This strategic investment is on track and will become a business advantage, both to drive a competitive cost position and to control the quality required to produce evermore complex implants,” chair & CEO Gregory Lucier said in a press release.

The company adjusted its guidance for the full fiscal year, expecting to see sales of between $1,105 million and $1,110 million, up from previous guidance of between $1,095 million and $1,105 million.

Nuvasive cut its non-GAAP EPS guidance for the year, down to between $2.15 and $2.23 from earlier guidance of between $2.37 and $2.40.

Shares in the company rose 2.4% today, closing at $62.51. Shares have dropped slightly in after hours trading, down 0.8% at $62 as of 4:47 p.m. EDT.

Earlier this month, NuVasive said that it inked a strategic partnership deal with spinal and extremity surgery tech company Biedermann Technologies.

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