NuVasive Inc. (NSDQ:NUVA) swung to a 1st-quarter loss after a jury ruled against it in a trademark infringement battle with NeuroVision, prompting the medical device company to lower its 2014 earnings outlook and investors to pare more than 2% from its share price.
NuVasive reported losses of -$18.3 million, or -40¢ per share, on sales of $177.5 million for the 3 months ended March 31, putting red ink in the ledger despite 11.3% sales growth compared with the same period last year.
Absent the $30 million charge stemming from NuVasive’s trademark infringement loss to NeuroVision, adjusted profits were $14.3 million, or 29¢ per share, 3¢ ahead of expectations on Wall Street. But the swing to red, coupled with the earnings guidance cut, prompted investors to send NUVA shares down 2.4% to $33.12 apiece as of about 2 p.m. today.
"Results in the first quarter of 2014 were solidly in line with our expectations, and place us on track to achieve full year guidance by continuing to execute our share-taking strategy. While staying true to NuVasive’s core philosophy of driving innovation to improve spine patient outcomes, we are evolving our organization to maintain a start-up mentality and to continue to lead spine innovation as a much larger, and increasingly profitable, global organization," chairman & CEO Alex Lukianov said in prepared remarks.
NuVasive said it still expects to post sales of about $725 million this year, but lowered its EPS guidance from 11¢ to a loss of -27¢. Adjusted EPS are still pegged at $1.06.