Wall Street wavered on spine surgery devices maker NuVasive Inc. (NSDQ:NUVA) today after the company released its latest earning report.
For the 3 months ended June 30 NuVasive reported $154.4 million in sales, a 16.1% spike from the $133 million reporting for the same period last year.
That news may have been marred by a 47% drop in profits for the quarter, partially attributed to higher operating costs associated with "infrastructure expansion" and a $7 million interest expense.
The spine device maker posted $2.9 million in earnings, or 6¢ earned per diluted share, for the 2nd quarter. That’s nearly half the $5.4 million, or 13¢ per share, that the company reported for the 2nd quarter of 2011.
The company remains optimistic about its burgeoning sales, and raised its forecasts for the rest of the year to expected sales of $625 million (previously $615 million) and earnings of 16¢ per share (previously 9¢).
"Our financial performance in the 2nd quarter and 1st half of 2012 attests to excellent execution of our market-share taking strategy, and gives us confidence to raise our full year revenue and profitability guidance," chairman & CEO Alex Lukianov said in prepared remarks. "We are laying the groundwork today to become the #3 spine company in the world."
Wall Street was less than impressed by the optimistic outlook. NUVA shares lost 4.6% in mid-day trading, with shares going for $21.87 as of about 2:45 p.m.
The slide continued despite votes of confidence from analysts. Jeffries Group raised its price target on NuVasive to $27 (previously $20).