NuVasive Inc. (NSDQ:NUVA) today released its 3rd quarter earnings, posting earnings per share that topped expectations from analysts on Wall Street while its sales fell just short and announced an upcoming $100 million share repurchase program.
The San Diego, Calif.-based company posted profits of $33.6 million, or 64¢ per share, on sales of $247.4 million for the 3 months ended Sept. 30, for massive bottom-line growth of 756% while sales grew a smaller 3.2% compared to the same period during the prior year.
Adjusted to exclude 1-time items, earnings per share were 52¢, just ahead of the Wall Street consensus of 52¢, though sales fell just short of analysts’s $255.4 million expectations.
“Our results for the third quarter reflect continued strength in our International business with 46% growth on a constant currency basis year over year, representing the fourth consecutive quarter with growth in excess of 20%. In the U.S., we are making significant inroads in the deformity market with our Reline posterior fixation system and have launched multiple spinal hardware technologies over the last quarter that continue to enhance our differentiated and procedurally-focused portfolio. Disruptions from the recent hurricanes in our U.S. and International business negatively affected third quarter total revenue results by approximately $5 million. Excluding the impact of the hurricanes and one less selling day, revenue growth would have been approximately 6%,” chair & CEO Gregory Lucier said in a prepared statement.
NuVasive updated its full year 2017 guidance to take into account its 3rd quarter earnings as well as the impact from Hurricane Maria in Puerto Rico during the 4th quarter.
The company shifted its full year revenue expectations from $1.065 billion to $1.030 billion, with earnings per share adjusted from between $1.13 and $2 to between $1.37 and $1.91.
NuVasive shares stayed mostly steady today pre-release, down 0.7% to close at $54.59.
The company also announced a share repurchase program was approved by the company’s board of directors and will commence over a 3-year period beginning Oct. 25. Through the program, NuVasive will repurchase stock from time time time as it deems appropriate.
Funding for the repurchasing will come from cash on hand, cash from operations and from existing credit facilities.
“NuVasive’s Board of Directors strongly believes in the ability of the leadership team to execute against our strategic initiatives and position the company for continued growth and value creation. We are confident in our ability to fund long-term organic growth initiatives and improve operating profitability, while staying committed to disciplined capital deployment and to driving value for our shareholders,” chair & CEO Lucier said in a prepared statement.
NuVasive said it has approximately 51 million shares of common stock outstanding as of Sept. 30.
