NuVasive Posts 16.2% First Quarter Sales Increase
Tracey Romero • Wed, May 3rd, 2017
NuVasive, Inc. announced on Tuesday April 25, 2017 that sales for the first quarter of 2017 rose 16.2% (excluding currency and acquisitions). Sales for the quarter were $249.9 million, which is up from $215.1 million reported in the first quarter of 2016.
NuVasive (NUVA), which is headquartered in San Diego, California, is a leading medical device company focused on spine surgery. The following table shows the sales details for 2017.
Glenn Novarro, an analyst with RBC Capital Markets, LLC, said in his report, “[NuVasive, Inc.] reported an in-line [first quarter] with sales and EPS matching consensus. However, results were slightly below our expectations and we are reducing our 2017 and 2018 estimates to reflect [first quarter].”
He added, “Our survey work suggests the spine market remains stable, and [NuVasive, Inc.] remains well positioned to take share. Given the recent rally, we would expect the shares to sell off and we are buyers on the pullback.”
Joanne K. Wuensch, an analyst with BMO Capital Markets agreed that the first quarter results were in line with expectations, but added, “We suspect that the market may have been looking for something more.”
“Looking forward,” she said, “momentum should build in the 2H17 with the integration of LessRay and the launches of RELINE Trauma, Modules 3D printed implants, and the MLX and TLX expandable implant.
Gregory T. Lucier, company chairman and chief executive officer, said in a release, "NuVasive is off to a solid start to the year, with our International business exceeding our expectations, and we saw momentum building in our U.S. business as we exited the quarter.”
Lucier added, "We are on track to deliver non-GAAP operating profit margin expansion of at least 100 basis points in 2017, reflecting our continued focus on operational efficiencies and the ramp up of our in-house manufacturing facility. Coupled with several innovative product and systems launches planned for 2017, including LessRay designed for radiation reduction, RELINE Trauma system, expandable cages and UNYTE system for complex fractures, we anticipate strong revenue acceleration for the balance of the year.”