You win some, you lose some. Nevro might have been able to beat analysts’ estimates in sales, but the neuromodulation specialist failed to meet consensus of earnings per share for this most recent quarter.
The Redwood City, CA-based company said 3Q18 EPS ($0.37), $0.08 worse than the analyst estimate of ($0.29). Revenue for the quarter came in at $95.6 million vs. the consensus estimate of $94.28 million.
The company said the increase in revenue was primarily attributable to the continued adoption of the Senza system. Nevro said it expects worldwide revenue to be at the low end of its previously stated range of $385 million to $390 million for 2018.
Nevro also discussed costs related to its patent spat with Boston Scientific. Both companies have been clashing over intellectual property since shortly after FDA approved Nevro's Senza spinal cord stimulation (SCS) system in May 2015.
“Legal expenses associated with the Boston Scientific intellectual property litigation were $3.5 million for the quarter, as compared to $4.6 million in the same quarter of last year,” said Rami Elghandour, president and CEO of Nevro, according to a Seeking Alpha Transcript. “Net loss from operations for the period was $9.2 million compared to $4.4 million for the third quarter of 2017. At the end of the third quarter of 2018, we had $258 million in cash, cash equivalents and short-term investments.”
The two firms settled the dispute in late July.