NuVasive Earnings: Here’s Why Investors are Ambivalent Now

NuVasive, Inc. (NASDAQ:NUVA) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

NuVasive, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 25.93% to $0.2 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Rose 7.3% to $165.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NuVasive, Inc. reported adjusted EPS income of $0.2 per share. By that measure, the company missed the mean analyst estimate of $0.24. It beat the average revenue estimate of $161.63 million.

Quoting Management: Alex Lukianov, Chairman and Chief Executive Officer, said, “Results in the first half of 2013 demonstrate solid execution against a multi-year plan, and give us increased confidence in our ability to execute to the full year guidance we have outlined. Importantly, we are cultivating the pillars of NuVasive’s foundation to sustain earnings growth well into the future. NuVasive is changing spine surgery with a proven, share taking strategy of Superior Outcomes, Absolute Responsiveness, and Speed of Innovation. That mission will drive our evolution toward $1 billion in revenue with an improved profitability profile.”

Key Stats (on next page)…

Revenue increased 3.89% from $159.5 million in the previous quarter. EPS decreased 23.08% from $0.26 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.24 and has not changed. For the current year, the average estimate has moved down from a profit of $1.02 to a profit of $1.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)