NuVasive Jumps as Sales Top Analyst Estimates
NuVasive Inc. (NUVA), a maker of devices to treat spinal problems, jumped the most since October after forecasting 2013 sales that would beat analyst estimates.
NuVasive climbed 10 percent to $17.39 at 9:50 a.m. New York time, after rising to $18.05 for the biggest intraday increase since Oct. 24. The San Diego-based company said in a statement today that it expects revenue this year of $655 million. That would be higher than the $638.3 million average estimate of 22 analysts compiled by Bloomberg. NuVasive said sales in 2012 were about $619 million, also topping analyst predictions.
The company has struggled with departures in its sales force and reported one of its biggest-ever quarter-over-quarter revenue declines in October, Glenn Novarro, a New York-based RBC Capital Markets analyst, said in a research note before the company announcement. NuVasive seems to be solving the issues, said the analyst, who upgraded the company’s shares today.
“We had a sense that things were back on track, but these results are certainly much better than we expected,” Novarro said in a telephone interview. “They went out and aggressively built back the sales force.”
NuVasive will report final results for 2012 on Feb. 26 after the close of New York trading, the company said in its statement.
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