The San Diego, Calif.-based company posted profits of $12.8 million, or 22¢ per share, on sales of $249.9 million for the 3 months ended March 31. The company saw sales grow 16.2% compared to last year while its profits shot up from the red, having reported losses of $3.4 million during the 1st quarter of 2016.
After adjusting to exclude 1-time items, earnings per share were 38¢, just in line with the 38¢ consensus on The Street. Revenue fell just short, with consensus at $250.8 million.
“NuVasive is off to a solid start to the year, with our International business exceeding our expectations, and we saw momentum building in our U.S. business as we exited the quarter. We are on track to deliver non–GAAP operating profit margin expansion of at least 100 basis points in 2017, reflecting our continued focus on operational efficiencies and the ramp up of our in-house manufacturing facility. Coupled with several innovative product and systems launches planned for 2017, including LessRay designed for radiation reduction, Reline Trauma system, expandable cages and Unyte system for complex fractures, we anticipate strong revenue acceleration for the balance of the year,” CEO & chair Gregory Lucier said in an SEC filing.
The company reiterated earlier full-year guidance, expecting to see revenue of $1.1 billion, with non-GAAP earnings per share of $2. In the earnings release NuVasive also said that it amended its existing revolving credit line to expand it from $150 million to $500 million.
Shares have dropped 4.5% in mid-day trading, down $3.41 at $73.53 as of 1:34 p.m. EST.
Last week, NuVasive said it launched its Reline Trauma spinal posterior fixation portfolio designed to aid in the preservation and restoration of patient alignment. The company said the portfolio will support multiple approaches to spinal fixation procedures, including open, maximum access surgery or hybrid approaches.