NuVasive Pre-Announces 4Q, Beating Estimates
BY LAUREN UZDIENSKI, FEBRUARY 1, 2010
Last Friday, NuVasive pre-announced full-year 2009 revenues of $370 million, increasing about 48% over 2008, and EPS of $0.14-$0.15. Analysts had forecast sales of $367 million and EPS of $0.14, setting the company up for a modest top-line beat. President and CEO Alex Lukianov said in the press release that NuVasive's products "continue to gain market share as surgeon adoption expands," and he did not address XLIF reimbursement.
Implied Q4 sales were about $107 million, up 43% from the year-ago period and exceeding analysts' targets by about $4 million. This news may help to quell fears about reimbursement issues surrounding the company, namely that XLIF has been deemed "experimental" by several private insurance payors in September and October. However, it's worth noting that this information didn't come to light until well into the fourth quarter. If sales have been affected by payment and coverage difficulties, that will become more visible in Q1.
The company indicated that its revenue expectations for 2010 would be at the $480 million to $500 million level - up 30% to 35% from 2009 - which is in line with the street's expectations.
