NuVasive Inc. (NUVA) declined the most ever after the maker of orthopedic devices said third-quarter revenue was less than the company anticipated.
NuVasive fell 33 percent to $15.19 at the close of New York trading, the biggest drop since May 2004. The San Diego-based company has risen 21 percent this year.
Preliminary revenue was about $147 million, less than company expectations for a similar level as the $154.4 million posted in the second quarter, NuVasive said yesterday. Sales were hurt by competitor discounts and increased delays and denials of coverage by insurers, the device maker said.
“The miss was surprising and calls into question NuVasive’s” growth prospects, said Richard Newitter, a New York-based analyst for Leerink Swann & Co., in a note to investors today. The third-quarter sales were “well short of expectations,” he wrote.
Analysts at Brean Murray Carret & Co., BMO Capital Markets, Wells Fargo Securities and RBC Capital Markets reduced their ratings on NuVasive. Newitter has an outperform rating on the shares.
Full results for the third quarter will be released Oct. 29, the company said.
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