Earnings Review and Free Research Report: NuVasive’s Q3 Non-GAAP EPS Surged 30% Y-o-Y; Surprised Expectations

Research Desk Line-up: Masimo Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 8, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on NuVasive, Inc. (NASDAQ: NUVA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NUVA, following the Company's posting of its financial results on October 24, 2017, for the first quarter fiscal 2017 (Q3 FY17). The San Diego, California-based Company reported a 30% y-o-y surge in non-GAAP EPS, topping market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Medical Appliances & Equipment industry. Pro-TD has currently selected Masimo Corporation (NASDAQ: MASI) for due-diligence and potential coverage as the Company announced on October 31, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Masimo when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NUVA; also brushing on MASI. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

During the quarter ended on September 30, 2017, NuVasive reported revenues of $247.43 million, up 3.2% from $239.65 million recorded at the end of Q3 FY16. However, revenues numbers for Q3 FY17 missed consensus market expectations of $255 million. Meanwhile, the Company's revenues on constant currency were up by 3.4% y-o-y in the reported quarter.

The spinal device maker posted GAAP net income attributable to NuVasive of $33.62 million, or $0.64 per diluted share, in Q3 FY17, up from $3.93 million, or $0.07 per diluted share, in Q3 FY16. The Company's non-GAAP net income increased to $26.72 million, or $0.52 per diluted share, in Q3 FY17 from $21.13 million, or $0.40 per diluted share, in Q3 FY16. Furthermore, Wall Street had expected the Company to report non-GAAP net income of $0.48 per diluted share.

Operational Metric

For the reported quarter, the Company's cost of products sold came in at $65.58 million, up from $59.20 million in Q3 FY16. The Company's non-GAAP gross margin stood at $181.98 million, or 73.5% of revenues, for Q3 FY17 compared to $182.91 million, or 76.3% of revenues, in the last year's comparable quarter. NuVasive's selling, marketing, and administrative (SG&A) expenses was $125.80 million during Q3 FY16 versus $131.89 million in the prior year's same quarter. The Company spent $12.72 million on research and development (R&D) in Q3 FY17 compared to $12.52 million in the last year's corresponding quarter.

The Company reported GAAP operating profit of $30.60 million in Q3 FY17 up from $21.16 million in Q3 FY16. The Company's non-GAAP operating profit improved to $43.46 million, or 17.6% of revenues, in Q3 FY17 from $38.51 million, or 16.1% of revenues, in Q3 FY16. Furthermore, the Company's earnings before interest, tax, depreciation, and amortization (EBITDA) was $61.56 million, or 24.9% of revenues, in Q3 FY17 compared to $62.04 million, or 25.9% of revenues, in Q3 FY16.

Cash Flow & Balance Sheet

During the first three-quarters of FY17, cash provided by operating activities was $118.89 million compared to $96.02 million in the prior year's same period. At the close of books on September 30, 2017, NuVasive had $62.20 million in cash and cash equivalents compared to $153.64 million at the close of books on December 31, 2016. The Company's long-term senior convertible notes stood at $578.19 million as on September 30, 2017, compared to $564.41 million as on December 31, 2016.

Outlook

In its guidance for FY17, NuVasive management expects revenues to grow by 7.1% to $1.03 billion. Operating margin for full-year FY17 is projected to be in the range of 11.5% to 16.6%. The Company has projected the earnings for the year ending December 31, 2017, to be between $1.37 and $1.91. Furthermore, the Company forecasts EBITDA margin during FY17 to be in the range of 23.3% to 25.9%.

Stock Performance

On Tuesday, November 07, 2017, NuVasive's stock closed the trading session at $55.96, marginally falling 0.85% from its previous closing price of $56.44. A total volume of 485.81 thousand shares were exchanged during the session. Shares of the Company have a PE ratio of 47.06 and currently have a market cap of $2.84 billion.

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