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NuVasive (NUVA) Stock Dips Despite Strong Preliminary Q4 Show

Zacks Equity Research

NuVasive, Inc. NUVA announced preliminary revenue results for the fourth quarter and 2019. The company is slated to release its detailed financial results for the same period in late February.

The preliminary figures for revenue growth rate for 2019 are higher than the company’s guidance and have surpassed the Zacks Consensus Estimate. However, this still fails to instill investors’ confidence, which is reflected through a 1.4% dip in the stock price that reached $79.61 on Jan 15 at the closing.

NuVasive expects total revenues of $310 million for the to-be-reported quarter, indicating 8% rise from the year-ago reported figure, on both reported and constant currency (CER) basis. Notably, the company’s guidance is above the Zacks Consensus Estimate of $304 million.



For the year, NuVasive's preliminary figures indicate a year-over-year improvement in total revenues to $1.17 billion, ahead of the company’s guidance of $1.14-$1.16 billion as well as the Zacks Consensus Estimate of $1.16 billion. This suggests 6% rise on a reported basis and a 7% increase at CER.

For 2019, strong uptick in total revenues is expected on robust growth in U.S. Spinal Hardware and international revenues. However, the company expects to witness marginal growth in U.S. Surgical Support revenues.

Segmental Expectations

Preliminary figures for fourth-quarter indicate an expected revenue improvement for both U.S. Spinal Hardware and U.S. Surgical Support segments.

For the quarter, U.S. Spinal Hardware revenues are likely to rise 8% on a reported basis.

U.S. Surgical Support revenues are likely to rise 3% on a reported basis.

Geographically, the company’s international revenues are expected to increase 14% on both reported and CER basis.

Price Performance

Shares of NuVasive have gained 69.8% in the past year compared with the industry’s 14.6% growth.

Zacks Rank & Key Picks

Currently, the company carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Haemonetics Corporation HAE, Hill-Rom Holdings, Inc. HRC and Medtronic plc MDT.

Haemonetics, currently flaunting a Zacks Rank #1 (Strong Buy), has a projected long-term earnings growth rate of 13.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hill-Rom’s long-term earnings growth rate is estimated at 11.7%. The company presently carries a Zacks Rank #2 (Buy).

Medtronic’s long-term earnings growth rate is estimated at 7.4%. It currently carries a Zacks Rank #2.

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