NuVasive (NASDAQ: NUVA) reported Q3 EPS of $0.56, $0.06 worse than the analyst estimate of $0.62. Revenue for the quarter came in at $271.3 million versus the consensus estimate of $265.44 million.

• Revenue increased 9.8% to $271.3 million, or 10.2% on a constant currency basis;
• GAAP operating profit margin of 6.6%; Non-GAAP operating profit margin of 15.6%;
• GAAP diluted earnings per share of $0.30; Non-GAAP diluted earnings per share of $0.56; and
• Company updates full-year 2018 guidance.

"Our third quarter results reflect accelerated year-over-year revenue growth of nearly 10%, supported by strong performances in both spinal hardware and surgical support business lines with overall U.S. case volumes up more than 7%," said Gregory T. Lucier, chairman and chief executive officer of NuVasive. "With the sense the overall U.S. spine market is trending healthier, we made strategic investments this quarter on the heels of this momentum in key R&D initiatives, additions to our commercial sales force and infrastructure upgrades to improve set fulfillment—all to support a strong start to 2019 and beyond." The Company's financial results reflect continued improvement of its in-sourcing efforts at the West Carrollton, Ohio manufacturing facility, and the Company reiterated expectations that the facility will drive an additional 130 to 150 basis points in operating margins in 2019.

Lucier commented, "We made solid progress with our in-source manufacturing initiatives by bringing in additional SKUs during the third quarter with throughput ramping to higher volumes. This strategic investment is on track and will become a business advantage, both to drive a competitive cost position and to control the quality required to produce evermore complex implants."NuVasive also recently made several key technology introductions and partnership announcements, including the unveiling of the NuVasive Pulse™surgical automation platform, Spine Precision Partnership with Siemens Healthineers and signing of a strategic partnership with Biedermann Technologies to further enhance NuVasive's best-in-class complex spine deformity technologies. The Company also launched several new products to further reinvigorate its Biologics business line, which continues to recover at a faster-than-expected pace. The Company now anticipates its Biologic business will return to growth in the fourth quarter 2018.

GUIDANCE:

NuVasive sees FY2018 EPS of $2.15-$2.23, versus the consensus of $2.38. NuVasive sees FY2018 revenue of $1.105-1.1 billion, versus the consensus of $1.1 billion.

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