NuVasive, Inc. (NASDAQ:NUVA) Hits Multi-Month Highs On Robust Earnings

NuVasive, Inc.’s (NASDAQ:NUVA) shares move up to multi-month highs on Tuesday after the company reported a stronger-than-expected first-quarter revenue. Following the robust earnings, analyst at William Blair & Co. upgraded the stock to outperform from market perform and Baird lifted its rating to outperform from neutral.

The company reported net income of $673,000 2 cents per share vs. $2.4 million 6 cents per share, down 71.50% year-over-year.  Revenue during the quarter grew 21.9% to $151.7 million. On an adjusted basis, the company would have earned 20 cents a share.Analysts were estimating the company to report of 7 cents per share on revenue of $143.6 million.In the first quarter reported Monday, NuVasive's lumbar revenue grew 12% and its biologics revenue rose 15%, helping the company report better-than-expected total sales.The medical-device maker continues to gain share of the spinal market, as larger rivals remain beset by reimbursement hurdles

The company said it has been able to gain share without dramatically lowering prices. "So if you take a look at the last quarter and this quarter, there's no change per se that we're seeing with regard to pricing," Chairman and Chief Executive Alex Lukianov said Monday.There are also indications that declines in the spinal market are stabilizing. According to analyst at Mizuho Securities, the global spinal market fell 1% excluding currency in the first quarter, an improvement from a 3% decline in the fourth quarter. The spinal market had suffered from the overall decline in medical usage as well as questions over whether less expensive treatments like diet and exercise are also effective.
Shares of NUVA jumped 23.05% to $20.39, hitting a 7-month high. The stock has risen about 62% so far this year and down 32 over the past one year.NuVasive, Inc. (NuVasive) is a medical device company. NuVasive focuses on developing minimally disruptive surgical products and procedures for the spine.