NuVasive Beats on EPS but GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

NuVasive (NAS: NUVA) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), NuVasive met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.


Margins dropped across the board.

Revenue details
NuVasive chalked up revenue of $154.4 million. The 22 analysts polled by S&P Capital IQ expected to see a top line of $154.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $133.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.27. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.23 per share. GAAP EPS of $0.06 for Q2 were 54% lower than the prior-year quarter's $0.13 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 76.3%, 450 basis points worse than the prior-year quarter. Operating margin was 8.4%, 20 basis points worse than the prior-year quarter. Net margin was 1.9%, 210 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $153.6 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $623.0 million. The average EPS estimate is $0.95.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 162 members out of 181 rating the stock outperform, and 19 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give NuVasive a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NuVasive is outperform, with an average price target of $24.16.

The article NuVasive Beats on EPS but GAAP Results Lag originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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