Nevro Corp’s NVRO shares dipped 2.9% on May 6 a day after first-quarter earnings release.
The company reported first-quarter 2021 loss per share of 85 cents, narrower than the Zacks Consensus Estimate of a loss of 86 cents. The bottom line, however, compared unfavorably with the year-ago quarter’s loss per share of 78 cents.
Revenues of $88.6 million beat the Zacks Consensus Estimate by 4.1%. The top line also inched up 1% year over year.
In the quarter under review, international revenues were $13.9 million, up 14% year over year on a reported basis and 4% in constant currency. U.S. revenues for the quarter totaled $74.7 million, down 1% year over year due to 4% decline in implant trial procedures.
Gross profit totaled $62.3 million, up 2.9% year over year. Gross margin was 70.3%, up 108 basis points (bps).
Total operating expenses rose 1.4% year over year to $84.8 million.
Loss from operations was $22.5 million, narrower than the year-ago quarter’s loss of $23.1 million.
Nevro Corp. Price, Consensus and EPS Surprise
Nevro Corp. price-consensus-eps-surprise-chart | Nevro Corp. Quote
Nevro projects second-quarter 2021 global revenues in the range of $104-$106 million. The Zacks Consensus Estimate for the same is pegged at $101.1 million.
For 2021, the company now expects total revenues in the $440-$450 million band, narrowed from the prior guidance of $430-$450 million. This updated guidance indicates 22-24% growth from the prior-year reported figure. The Zacks Consensus Estimate for the same stands at $442.9 million.
The company exited the first quarter of 2021 with cash and cash equivalents of $86.5 million compared with $44.6 million at the end of the fourth quarter of 2020.
Nevro ended the March quarter on a strong note. The company saw growth in international revenues during the period. Further, the commercial launch of the Senza Omnia SCS System continues to buoy optimism on the stock. Expansion in gross margin is a positive too. The FDA nod for the first major Omnia upgrade and the new Trial Stimulator Module is another plus. However, the company saw weakness in domestic revenues during the first quarter. In the same period, implant trial procedures declined 4% year over year as well. Also, the company incurred an operating loss in the quarter under review.
Zacks Rank and Key Picks
Nevro currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Boston Scientific Corporation BSX, Integer Holdings Corporation ITGR and HCA Healthcare, Inc. HCA, each currently carrying a Zacks Rank #2 (Buy) .You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.
Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.
HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.
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