NuVasive rises as 3Q revenue tops estimates
SAN DIEGO (AP) — Medical device maker NuVasive Inc. said Wednesday that it turned a profit in the third quarter, and its shares bounced back as its earnings topped estimates.
NuVasive said its revenue grew 12 percent to $148.4 million. Earlier this month the company cut its revenue outlook by about $7 million, saying sales were hurt by increased discounts from competitors, coverage delays and denials from health insurers, and by increased customer turnover as more surgeons participated in physician-owned distributorships.
NuVasive reported net income of $2.4 million, or 5 cents per share. A year ago the company lost $67.6 million, or $1.69 per share, because of charges related to a legal liability and costs related to infrastructure expansion.
NuVasive said it earned 23 cents per share if one-time costs are excluded, which surpassed analyst estimates of 21 cents per share.
Earlier this month the company said its third-quarter revenue would be about $147 million. It had previously forecast about $154.4 million in revenue.
NuVasive said it has sped up the pace of new hires for its sales force, and it is increasing its engagement with major customers.
The company said it now expects adjusted net income of 88 to 90 cents per share in 2012, down from its previous estimate of about 97 cents per share. It cut its revenue estimate to $601 million to $606 million from $625 million
Analysts were expecting 93 cents per share and $612.8 million in revenue on average.
Shares of NuVasive gained $1.57, or 12.4 percent, to $14.22 in afternoon trading. The shares are down 44.1 percent from their Oct. 3 closing price.