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Nevro (NVRO) Rallies 1.3% Despite Delivering Loss in Q3
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Nevro Corp (NVRO - Free Report) climbs 1.3% on Nov 5, after the company reported third-quarter 2020 earnings results.
The company reported loss per share of 29 cents, narrower than the Zacks Consensus Estimate of a loss of 59 cents. The company had incurred loss per share of 58 cents in the year-ago quarter.
Revenues of $108.5 million surpassed the Zacks Consensus Estimate by 4.2%. The figure also grew 8.3% year over year.
Quarter Highlights
In the quarter under review, international revenues were $17.5 million, up 10% year over year on a reported basis and 5% at constant currency. A successful Omnia unveiling, higher patient and customer activity, and rebound in customer inventory levels (on a sequential basis) contributed to the improvement.
U.S. revenues for the quarter totaled $90.9 million, up 35% year over year. Per management, this upside was driven by an increase in patient and customer activity, especially growth in the number of U.S. permanent implants.
Margins
Gross profit totaled $76.1 million, up 8.8% year over year. Gross margin was 70.1%, up 32 basis points (bps).
Total operating expenses fell 7.3% year over year to $79.6 million.
Loss from operations was $3.5 million, narrower than the year-ago quarter’s loss of $15.9 million.
Due to the continued economic uncertainties resulting from COVID-19, Nevro has not issued any guidance for 2020.
Cash Position
The company exited the third quarter with cash and cash equivalents of $118.6 million, compared with $276.5 million at the end of the second quarter.
Summary
Nevro exited the third quarter on a strong note. The company saw growth in both domestic and international revenues in the quarter. Sequential improvement in daily patient trial activity in the months from July to October was impressive. Reduction in operating expenses is also encouraging. The commercial launch of the Senza Omnia SCS System continues to buoy optimism. Expansion in gross margin is a positive.
However, the company incurred operating loss in the quarter under review.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
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Nevro (NVRO) Rallies 1.3% Despite Delivering Loss in Q3
Nevro Corp (NVRO - Free Report) climbs 1.3% on Nov 5, after the company reported third-quarter 2020 earnings results.
The company reported loss per share of 29 cents, narrower than the Zacks Consensus Estimate of a loss of 59 cents. The company had incurred loss per share of 58 cents in the year-ago quarter.
Revenues of $108.5 million surpassed the Zacks Consensus Estimate by 4.2%. The figure also grew 8.3% year over year.
Quarter Highlights
In the quarter under review, international revenues were $17.5 million, up 10% year over year on a reported basis and 5% at constant currency. A successful Omnia unveiling, higher patient and customer activity, and rebound in customer inventory levels (on a sequential basis) contributed to the improvement.
U.S. revenues for the quarter totaled $90.9 million, up 35% year over year. Per management, this upside was driven by an increase in patient and customer activity, especially growth in the number of U.S. permanent implants.
Margins
Gross profit totaled $76.1 million, up 8.8% year over year. Gross margin was 70.1%, up 32 basis points (bps).
Total operating expenses fell 7.3% year over year to $79.6 million.
Loss from operations was $3.5 million, narrower than the year-ago quarter’s loss of $15.9 million.
Nevro Corp. Price, Consensus and EPS Surprise
Nevro Corp. price-consensus-eps-surprise-chart | Nevro Corp. Quote
Guidance
Due to the continued economic uncertainties resulting from COVID-19, Nevro has not issued any guidance for 2020.
Cash Position
The company exited the third quarter with cash and cash equivalents of $118.6 million, compared with $276.5 million at the end of the second quarter.
Summary
Nevro exited the third quarter on a strong note. The company saw growth in both domestic and international revenues in the quarter. Sequential improvement in daily patient trial activity in the months from July to October was impressive. Reduction in operating expenses is also encouraging. The commercial launch of the Senza Omnia SCS System continues to buoy optimism. Expansion in gross margin is a positive.
However, the company incurred operating loss in the quarter under review.
Zacks Rank and Key Picks
Nevro currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc. (ALGN - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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