NuVasive Shares Up 6% As Q2 Results Top Estimates, Boosts 2014 Outlook

(RTTNews) - Shares of NuVasive, Inc. (NUVA) surged nearly six in extended trading on Tuesday after the medical devices company reported results for the second quarter that topped analysts' expectations. The company also raised earnings and revenue forecast for the full-year 2014.

The company reported a loss for the quarter that narrowed from last year, reflecting improved gross margins and double-digit revenue growth.

"We are pleased to report results that exceeded our expectations for both revenue and earnings and demonstrated strong progress toward our commitment to increase operational efficiency within NuVasive," Chairman and CEO Alex Lukianov said in a statement.

Lukianov noted that the strength across the company's lumbar and biologics products in the U.S. and the continued healthy growth of its international geographies drove results for the quarter.

The San Diego, California-based reported net loss attributable to the company of $4.09 million or $0.09 per share for the second quarter, narrower than $6.47 million or $0.15 per share in the prior-year quarter.

Excluding items, adjusted net income for the latest quarter was $13.61 million or $0.28 per share. On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 15.1 percent to $190.68 million from $165.70 million in the same quarter last year, and topped twenty Wall Street analysts' consensus estimate of $177.45 million.

Gross margin for the quarter improved 590 basis points to 76.5 percent from last year's 70.6 percent.

"Based on the greater than expected second quarter results and the strong momentum of our minimally invasive lumbar solutions, we are increasing our full year revenue, operating margin and earnings guidance for the year," Lukianov added.

Looking ahead to fiscal 2014, the company raised adjusted earnings guidance to about $1.11 per share from the prior forecast of about $1.06 per share, and now projects revenues of about $745 million, up from the previous projection of about $725 million. Street is currently looking for full-year 2014 earnings of $1.09 per share on revenues of $730.97 million.

NUVA closed Tuesday's regular trading session at $35.06, down $0.03 or 0.10% on a volume of 0.37 million shares. However, the stock surged $1.99 or 5.69% in the after-hours trading.