NuVasive Second Quarter Earnings Sneak Peek

NuVasive, Inc. (NASDAQ:NUVA) will unveil its latest earnings on Wednesday, July 25, 2012. NuVasive is a medical device company focused on the design, development, and marketing of products for the surgical treatment of spine disorders.

NuVasive, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 12 cents per share, a decline of 36.8% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 10.3% versus last year to 52 cents.

Past Earnings Performance: Last quarter, the company beat estimates by 4 cents, coming in at profit of 11 cents a share versus the estimate of net income of 7 cents a share. It marked the fourth straight quarter of beating estimates.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

A Look Back: In the first quarter, profit fell 71.5% to $673,000 (2 cents a share) from $2.4 million (6 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 21.9% to $151.7 million from $124.5 million.

Stock Price Performance: Between April 24, 2012 and July 19, 2012, the stock price rose $7.98 (48.2%), from $16.56 to $24.54. The stock price saw one of its best stretches over the last year between March 12, 2012 and March 19, 2012, when shares rose for six straight days, increasing 11.5% (+$1.78) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 19.7% (-$3.01) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 16% in revenue from the year-earlier quarter to $154.2 million.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 14.9% over the last four quarters.

The upcoming earnings announcement is a chance for the company to build on positive results from last quarter. The company reported losses in the third quarter of the last fiscal year and the fourth quarter of the last fiscal year, but finished in the black with income of $673,000 in the first.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.19 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.85 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 38.7% to $287.7 million while assets rose 6.4% to $630 million.

Analyst Ratings: With 15 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Will New Apple Products PUMP UP Shares?

Are Share Buybacks a Good Idea?

Is Now The Time to Buy This Depressed Dow Stock?