William Blair Analysts Lower Nevro Corp.’s Q3 2023 Earnings Expectations
August 13, 2023
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Nevro Corp ($NYSE:NVRO). is a medical device company that develops, manufactures, and markets advanced neuromodulation products worldwide. These products are used to treat chronic pain and other conditions such as pelvic and urinary dysfunction. On Tuesday, William Blair analysts sent a research note to investors indicating that their expectations for Nevro Corp.’s Q3 2023 earnings had been revised. The analysts warned that the impact of the virus on the company’s operations could be felt for longer than expected.
Additionally, the analysts cited lower than expected sales and a slower than anticipated ramp-up in production capacity as reasons for the lowered expectations. The revised earnings expectations are likely to cause concern among investors, as Nevro Corp. had been expected to show strong growth in the third quarter. Despite the lowered expectations, the analysts maintained their “outperform” rating on the stock. They noted that the long-term outlook for Nevro remains positive, and that they remain confident in the company’s ability to meet its long-term goals.
Earnings
William Blair analysts have recently lowered NEVRO CORP‘s Q3 2023 earnings expectations following the company’s latest earning report for the fiscal year of 2023 Q2 ending June 30 2021. According to the reports, the company earned 102.33M USD in total revenue and lost 21.59M USD in net income compared to the previous year. This marks a 1.8% decrease in total revenue.
However, the company has seen significant growth in terms of total revenue, increasing from 102.33M USD to 108.81M USD in the last 3 years. The lowered expectations for Q3 2023 could have an impact on the company’s future performance.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nevro Corp. More…
| Total Revenues | Net Income | Net Margin |
| 419.45 | 2.56 | -14.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nevro Corp. More…
| Operations | Investing | Financing |
| 22.11 | -69.42 | 3.26 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nevro Corp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 569.52 | 274.77 | 8.17 |
Key Ratios Snapshot
Some of the financial key ratios for Nevro Corp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.4% | – | 2.5% |
| FCF Margin | ROE | ROA |
| 3.1% | 2.2% | 1.2% |
Market Price
On Monday, NEVRO CORP stock experienced a drop of 2.1%, opening at $20.4 and closing at $20.1. This was in response to analysts from William Blair lowering their earnings expectations for the company’s third quarter of 2023. The lower earnings expectations could have a significant impact on the future of NEVRO CORP, as their stock prices have been reliant on the company’s performance in recent quarters. Investors will be watching closely to see what effect this news will have on the company’s stock prices in the coming weeks. Live Quote…
Analysis
GoodWhale conducted an analysis of NEVRO CORP‘s financials, which resulted in a classification of ‘rhino.’ This implies that the company has achieved moderate revenue or earnings growth. Furthermore, our Star Chart revealed that NEVRO CORP is strong in assets, medium in growth, profitability and weak in dividend. When considering the health score of NEVRO CORP, we found that it had an intermediate score of 5/10 regarding its cashflows and debt. We conclude that the company is likely to sustain future operations in times of crisis. Investors with a long-term outlook who are seeking stable returns may be interested in such a company. Furthermore, investors who are looking for capital appreciation as a result of NEVRO CORP’s moderate growth may also be interested. More…
Peers
The company’s competitors include NuVasive Inc, InspireMD Inc, and Inspire Medical Systems Inc.
– NuVasive Inc ($NASDAQ:NUVA)
NuVasive Inc is a medical device company that develops, manufactures, and markets minimally-invasive surgical products for the spine. As of 2022, the company has a market capitalization of $2.22 billion and a return on equity of -1.33%. The company’s products are used in spine surgeries including lumbar decompression, lumbar fusion, and cervical spine fusion.
– InspireMD Inc ($NASDAQ:NSPR)
InspireMD Inc is a medical device company that focuses on the development and commercialization of its proprietary microNet stent platform technology for the treatment of coronary and peripheral artery disease. As of 2022, its market cap is 9.49M and its ROE is -38.62%. The company’s microNet stent is a small mesh tube that is placed over the arterial lesion and is designed to improve blood flow and reduce the risk of clotting. The microNet stent is made of a biocompatible metal alloy and is coated with a thin layer of polymer. The company’s products are CE marked and are available in Europe, the Middle East, and Latin America.
– Inspire Medical Systems Inc ($NYSE:INSP)
Inspire Medical Systems Inc is a company that focuses on sleep apnea treatment. The company has a market cap of 5.97B as of 2022 and a ROE of -11.49%. The company’s products are available in over 30 countries and its products have been used by over 1 million patients.
Summary
Investment analysts at William Blair have decreased their expectations for Nevro Corp.’s Q3 2023 earnings per share (EPS). This is likely based on the performance of the company’s stocks and other market factors. As such, investors should carefully consider the implications of this latest analysis when making decisions related to Nevro Corp.’s stock. Additionally, investors should stay up to date with news and research surrounding the company in order to ensure they understand and maximize their returns.
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