Nevro Corp. (NYSE:NVRO) reported first-quarter 2019 loss of $1.45 per share, wider than the Zacks Consensus Estimate of a loss of 66 cents. The company incurred a loss per share of 59 cents in the year-ago quarter.
Nevro Corp. (NVRO): Free Stock Analysis Report
Stryker Corporation (SYK): Free Stock Analysis Report
CONMED Corporation (CNMD): Free Stock Analysis Report
DENTSPLY SIRONA Inc. (XRAY): Free Stock Analysis Report
Original post
Zacks Investment Research
The Zacks Rank #5 (Strong Sell) company posted revenues of $82.1 million, missing the Zacks Consensus Estimate by 6.1%. Revenues dropped 6.3% year over year.
Quarter Highlights
In the quarter under review, international revenues were $16.3 million, down 4% year over year but up 4% at constant currency (cc).
U.S. revenues for the quarter totaled $65.8 million, reflecting a 7% year-over-year drop. The decrease was due to the company’s decision to diminish the impact of high volume product orders in the quarter.
Nevro Corp. Price, Consensus and EPS Surprise
Nevro Corp. price-consensus-eps-surprise-chart | Nevro Corp. Quote
Margins
Gross profit totaled $53.2 million, down 14.2% year over year. Gross margin was 64.8%, down 590 basis points.
Operating expenses rose 22.6% year over year to $95.5 million. Research and development expenses totaled $14.1 million, up 27.5% year over year.
Sales, general and administrative expenses were up 22.1% year over year to $81.3 million.
Guidance
Nevro expects second-quarter 2019 worldwide revenue in the $87-$89 million range. The Zacks Consensus Estimate stands at $99.6 million, much above the projected range.
Gross margin is expected in the high 60% range.
Summary
Nevro exited the first quarter on a weak note. The company’s domestic and international revenues fell year over year. Loss per share also widened on a year-over-year basis. Significant contraction in gross margin raises concern. Surge in operating expenses adds to the woes.
On the bright side, increase in R&D expenses reflects focus on innovation.
Earnings of MedTech Majors at a Glance
Some better-ranked stocks which reported solid results this earning season are Stryker Corporation (NYSE:SYK) , DENTSPLY SIRONA (NASDAQ:XRAY) and CONMED Corporation (NASDAQ:CNMD) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the consensus estimate.
DENTSPLY reported adjusted earnings per share of 49 cents in the first quarter of 2019, beating the Zacks Consensus Estimate of 38 cents. Revenues of $946.2 million surpassed the Zacks Consensus Estimate of $917.1 million.
CONMED posted first-quarter 2019 adjusted earnings per share of 57 cents, which beat the Zacks Consensus Estimate of 54 cents. Revenues were $218.4 million, surpassing the consensus estimate of $213 million.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Nevro Corp. (NVRO): Free Stock Analysis Report
Stryker Corporation (SYK): Free Stock Analysis Report
CONMED Corporation (CNMD): Free Stock Analysis Report
DENTSPLY SIRONA Inc. (XRAY): Free Stock Analysis Report
Original post
Zacks Investment Research