NuVasive (NUVA) Shares Plummet on Weak Outlook; Analysts Downgrade at 8 Firms
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Price: $39.75 --0%
EPS Growth %: -100.0%
Financial Fact:
Consolidated net income: 3.5M
Today's EPS Names:
FRSB, DGICA, UXIN, More
EPS Growth %: -100.0%
Financial Fact:
Consolidated net income: 3.5M
Today's EPS Names:
FRSB, DGICA, UXIN, More
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Shares of medical device maker NuVasive Inc. (NASDAQ: NUVA) are down nearly 28 percent on Friday after the company posted better-than-expected earnings for the third quarter, but cut its full-year outlook due to a slowdown in the spine market.
The company slashed its full year earnings outlook to $1.42 to $1.45 per share from a prior view of $1.50 to $1.60 per share and its revenue forecast to $470 million to $475 million from $485 million to $495 million.
The Street had been forecasting earnings in the full year of $1.53 per share on revenue of $487.5 million.
Shares of the NuVasive are down 27.83 percent to $26.41 in midday market movement on Friday.
Today eight firms downgraded the stock following the company's forecast:
Goldman Sachs analyst says, "The need for the company to spend on sales and marketing has been a key concern of ours for some time. This looks to be compounded by slowing market growth and increased competition in the company’s core spinal implant business.After years of taking share, we think NuVasive may be entering a more challenging period, as both smaller and larger players enter the lateral approach segment of the spine market."
Leerink Swann downgraded the stock from Outperform to Market Perform, lowering its valuation from $44 to $32.
Leerink Swann analyst says, "Ongoing spine market growth pressures and outright
procedure cancellations--due to increased insurer pushback--seem poised to drive an extended period of growth uncertainty for NUVA, and possibly the industry. Over the next several years, we expect NUVA to benefit from a still-expanding product portfolio. Still, ongoing spine market growth pressures and outright procedure cancellations--due to increased insurer pushback and the economy--all seem poised to drive an extended period of growth uncertainty for NUVA, and the industry."
Barrington Research is maintaining an Outperform rating on NuVasive with a price target of $40.
Barrington analyst says, "NUVA missed its recently lowered expectations set just two weeks prior to the end of the third quarter. The miss demonstrates the significant negative change that occurred at the end of the quarter, as well management’s ability to anticipate the impact of the rapidly evolving spine market. While we are very surprised by the miss and acknowledge that the stock’s risk profile has increased, the stock is going to open $10 lower and we do not believe investors should sell at these levels."
The company slashed its full year earnings outlook to $1.42 to $1.45 per share from a prior view of $1.50 to $1.60 per share and its revenue forecast to $470 million to $475 million from $485 million to $495 million.
The Street had been forecasting earnings in the full year of $1.53 per share on revenue of $487.5 million.
Shares of the NuVasive are down 27.83 percent to $26.41 in midday market movement on Friday.
Today eight firms downgraded the stock following the company's forecast:
- JPMorgan from Overweight to Underweight, price target slashed from $42 to $25
- BMO Capital from Outperform to Market Perform, target cut from $43 to $30
- Needham from Strong Buy to Hold, $44 target maintained
- Stifel Nicolaus from Buy to Hold
- William Blair from Outperform to Market Perform
- Cowen from Outperform to Neutral
- Leerink Swann from Outperform to Market Perform
- Capstone from Buy to Hold
Goldman Sachs analyst says, "The need for the company to spend on sales and marketing has been a key concern of ours for some time. This looks to be compounded by slowing market growth and increased competition in the company’s core spinal implant business.After years of taking share, we think NuVasive may be entering a more challenging period, as both smaller and larger players enter the lateral approach segment of the spine market."
Leerink Swann downgraded the stock from Outperform to Market Perform, lowering its valuation from $44 to $32.
Leerink Swann analyst says, "Ongoing spine market growth pressures and outright
procedure cancellations--due to increased insurer pushback--seem poised to drive an extended period of growth uncertainty for NUVA, and possibly the industry. Over the next several years, we expect NUVA to benefit from a still-expanding product portfolio. Still, ongoing spine market growth pressures and outright procedure cancellations--due to increased insurer pushback and the economy--all seem poised to drive an extended period of growth uncertainty for NUVA, and the industry."
Barrington Research is maintaining an Outperform rating on NuVasive with a price target of $40.
Barrington analyst says, "NUVA missed its recently lowered expectations set just two weeks prior to the end of the third quarter. The miss demonstrates the significant negative change that occurred at the end of the quarter, as well management’s ability to anticipate the impact of the rapidly evolving spine market. While we are very surprised by the miss and acknowledge that the stock’s risk profile has increased, the stock is going to open $10 lower and we do not believe investors should sell at these levels."
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