NuVasive Quarterly Earnings Sneak Peek

NuVasive, Inc. (NASDAQ:NUVA) will unveil its latest earnings on Wednesday, October 24, 2012. NuVasive is a medical device company focused on the design, development, and marketing of products for the surgical treatment of spine disorders.

NuVasive, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 10 cents per share, a decline of 28.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 12 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 11 cents during the last month. Analysts are projecting profit to rise by 12.1% versus last year to 51 cents.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at profit of 15 cents a share versus the estimate of net income of 12 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit fell 46.8% to $2.9 million (6 cents a share) from $5.4 million (13 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 16.1% to $154.4 million from $133 million.

Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price fell $9.21 (-40.2%), from $22.92 to $13.71. The stock price saw one of its best stretches over the last year between March 12, 2012 and March 19, 2012, when shares rose for six straight days, increasing 11.5% (+$1.78) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 19.7% (-$3.01) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 11.6% in revenue from the year-earlier quarter to $148.3 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 16.2% over the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.75 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: With 10 analysts rating the stock as a buy, two rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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