LivaNova plc (NASDAQ: LIVN) reported Q1 EPS of $0.54, $0.03 worse than the analyst estimate of $0.57. Revenue for the quarter came in at $250.8 million versus the consensus estimate of $255.87 million.

"We are disappointed by our first quarter performance in U.S. Neuromodulation and Perceval® sales. As a leadership team, we are implementing a series of actions to counteract the market dynamic and salesforce retention issues we experienced," said Damien McDonald, Chief Executive Officer of LivaNova. "Sales results for first quarter 2019 were strong in Cardiovascular across all regions primarily driven by double-digit growth in heart-lung machines (HLM), along with strong growth in oxygenators and Advanced Circulatory Support. Neuromodulation had another quarter of double-digit growth in Europe and Rest of World. Profitability in the quarter was impacted by lower than expected sales in U.S. Neuromodulation."

GUIDANCE:

LivaNova plc sees FY2019 EPS of $3.00-$3.10, versus the consensus of $3.41.

As a result of the challenges in the U.S. Neuromodulation business, LivaNova worldwide net sales for full-year 2019 are now expected to grow between 1 and 3 percent on a constant-currency basis. This guidance continues to account for the impact of exiting a low-margin distribution agreement in Canada and one quarter of sales from TandemLife prior to the deal closing in April 2018.

• The Company now estimates that adjusted cash flow from operations, excluding integration, restructuring and litigation payments, will be in the range of $150 to $170 million for 2019.

"We are committed to overcoming the current hurdles in U.S. Neuromodulation, investing in advancing our pipeline and implementing programs to reach new patient populations around the globe. Over the past two years, we have transformed the LivaNova portfolio with the sale of our CRM business, investments in our internal R&D portfolio, including Treatment-Resistant Depression and Chronic Heart Failure, as well as recent acquisitions. At the same time, we have been able to expand gross margins, increase R&D to fuel our pipeline, and strengthen talent and capabilities," said McDonald. "We believe these efforts will provide a strong foundation for LivaNova to most effectively serve the needs of our customers and patients and create quality, long-term value for our shareholders."

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