NuVasive Inc. (NUVA:US), a maker of devices to treat spinal problems, jumped the most since October after forecasting 2013 sales that would beat analyst estimates.
NuVasive climbed 10 percent to $17.39 at 9:50 a.m. New York time, after rising to $18.05 for the biggest intraday increase since Oct. 24. The San Diego-based company said in a statement today that it expects revenue this year of $655 million. That would be higher than the $638.3 million average estimate of 22 analysts compiled by Bloomberg. NuVasive said sales in 2012 were about $619 million, also topping analyst predictions.
The company has struggled with departures in its sales force and reported one of its biggest-ever quarter-over-quarter revenue declines in October, Glenn Novarro, a New York-based RBC Capital Markets analyst, said in a research note before the company announcement. NuVasive seems to be solving the issues, said the analyst, who upgraded the company’s shares today.
“We had a sense that things were back on track, but these results are certainly much better than we expected,” Novarro said in a telephone interview. “They went out and aggressively built back the sales force.”
NuVasive will report final results (NUVA:US) for 2012 on Feb. 26 after the close of New York trading, the company said in its statement.
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