NuVasive posts higher 3Q profit but cuts outlook
NuVasive Inc. said Thursday its profit climbed in the third quarter as the medical device maker's revenue grew 27 percent.
But its shares tumbled sharply because the company downwardly revised its earnings and revenue estimates for the year.
NuVasive reported net income of $8.5 million, or 21 cents a share, for the three months ended Sept. 30. That compares with net income of $5.1 million, or 13 cents a share, in the same quarter last year.
Excluding litigation, stock-based compensation and other one-time costs, NuVasive earned $18.4 million, or 46 cents a share, the company said.
Revenue grew to $120.3 million from $94.9 million the year before.
Analysts polled by Thomson Reuters had expected, on average, a profit of 42 cents a share on revenue of $122.1 million.
Chairman and CEO Alex Lukianov noted the procedural slowdown in the spine market had a greater impact on NuVasive's results than it anticipated.
But he said he's optimistic any procedures being delayed will ultimately be performed.
Still, the company lowered its estimates for full-year results.
NuVasive now expects adjusted earnings per share to range from $1.42 to $1.45, down from a range of $1.50 to $1.60.
The company anticipates revenue of $470 million to $475 million, down from a previous range of $485 million to $495 million.
Analysts had been projecting full-year earnings per share of $1.53 on $487.5 million in revenue.
Shares of NuVasive fell $8.66, or 24 percent, to $27.95 in aftermarket trading. The stock slid 75 cents to $37.61 during the regular session.