Nevro (NYSE:NVRO) posted fourth-quarter results that beat the consensus forecast on Wall Street as it issued 2021 guidance that was slightly below analysts’ expectations.
The Redwood City, Calif.–based spinal cord stimulation system maker reported a loss of –$7.2 million, or –21¢ per share, on sales of $109.7 million for the three months ended Dec. 31, 2020, versus a loss of –$13.5 million, or –44¢ per share, on sales of $114.3 million in Q4 2019.
The results beat the expectations of The Street, where analysts on average predicted a loss of –33¢ per share on sales of $107.4 million.
“Both U.S. and international revenue was meaningfully impacted by the resurgence of COVID activity in the second half of the quarter,” CEO D. Keith Grossman said during an earnings call yesterday evening.
Grossman later added: “I really believe we’re well-positioned for attractive and sustainable growth as the pressure of COVID on our business subsides.”
The fourth quarter included Nevro burying the hatchet with Boston Scientific on a patent infringement lawsuit filed in federal court in Northern California. Though, patent cases continue in federal court in Delaware, where Law360 reports that Nevro filed a new lawsuit earlier this week.
Nevro expects Q1 2021 revenue of $84–$86 million and full-year 2021 revenue of $430–450 million — below the expectations of The Street, where analysts are predicting Q1 revenue of $94.23 million and full-year revenue of $451.19 million. The guidance is not only dependent on a steady U.S. and global recovery from the COVID-19 pandemic but also on FDA approval of Nevro’s Senza system to treat chronic pain from painful diabetic neuropathy. Nevro expects the PDN approval in early Q3 2021.
Investors reacted by sending NVRO shares down –1.41% to $168.50 apiece in morning trading today. MassDevice‘s MedTech 100 Index, which includes the stocks of the world’s largest medical device companies, was down slightly.