Nevro Q4 Earnings & Revenues Beat Estimates, Gross Margin Down

Nevro Corp. NVRO reported a loss per share of 64 cents in the fourth quarter of 2024, wider than the year-ago quarter’s loss of 15 cents. The Zacks Consensus Estimate is pegged at a loss per share of 79 cents.Revenues in DetailNevro registered worldwide revenues of $105.5 million in the fourth quarter, down 9.1% year over year on a reported basis and 9.2% on a constant-currency basis. However, the figure topped the Zacks Consensus Estimate by 1.5%.Quarterly HighlightsIn the quarter under review, international revenues were $14.4 million, down 3.8% year over year on a reported basis and 4.2% at a constant exchange rate (CER).U.S. revenues for the quarter totaled $91.4 million, down 9.9% year over year.Total U.S. permanent implant procedures declined 7% year over year, while U.S. trial procedures decreased 14.2% year over year.During the fourth quarter of 2024, Nevro made significant advancements in its product offerings and market expansion. The company launched the full market release of HFX iQ with HFX AdaptivAI, a responsive and personalized pain management platform that powers the HFX iQ spinal cord stimulation (SCS) system.In addition to the U.S. market release, Nevro introduced the HFX iQ SCS system in select European countries in January 2025 following the receipt of CE Mark Certification in November 2024.Further supporting its leadership in pain management, Nevro highlighted two key publications during the fourth quarter. In October 2024, the Journal of Pain Research published data showing significant pain relief, reduced HbA1c, and weight loss in patients with painful diabetic neuropathy and Type 2 diabetes using 10 kHz high-frequency SCS therapy.Additionally, in November 2024, Medical Devices: Evidence and Research demonstrated the Nevro1 SI Joint Fusion System’s superior stability, minimal bone removal, and increased fusion potential compared to traditional implant systems, reinforcing Nevro’s innovative position in pain management.In February 2025, Nevro and Globus Medical announced that they had entered into a definitive agreement for Globus Medical to acquire all shares of Nevro in an all-cash transaction valued at approximately $250 million, or $5.85 per share. The transaction is expected to close in the second quarter of 2025 and remains subject to the approval of Nevro's shareholders, regulatory approval and other customary closing conditions.Nevro Corp. Price, Consensus and EPS Surprise Nevro Corp. price-consensus-eps-surprise-chart | Nevro Corp. QuoteMargin TrendIn the quarter under review, Nevro’s gross profit declined 19.1% year over year to $65.1 million. The gross margin in the fourth quarter of 2024 was 62.5% compared with 70.1% in the prior-year quarter.Sales, general & administrative expenses decreased 5.5% year over year to $76.2 million.  Research and development expenses decreased 3.5% year over year to $11.9 million. Operating expenses in the fourth quarter of 2024 were $117.3 million ($96.5 million excluding restructuring charges, intangible amortization, contingent consideration revaluations, and a year-over-year reduction in litigation-related expenses) compared with $93.3 million in the prior-year quarter.The total operating loss in the reported quarter was $51.4 million ($24.1 million excluding restructuring charges, intangible amortization, contingent consideration revaluations, and year-over-year decrease in litigation-related expenses) compared with $11.8 million in the year-ago quarter.Financial PositionNevro exited the fourth quarter of 2024 with cash and cash equivalents and short-term investments of $292.5 million compared with $277 million at the end of the third quarter. Long-term debt at the end of fourth-quarter 2024 was $187.7 million compared with $184.4 million at the third-quarter end.GuidanceGiven the pending acquisition of Nevro by Globus Medical, Nevro has not issued full-year 2025 guidance.Our TakeNevro exited the fourth quarter of 2024 with better-than-expected results, with earnings and revenues beating their respective Zacks Consensus Estimate.Meanwhile, the company’s fourth-quarter revenues are affected by ongoing softness in the U.S. SCS market and competitive pressures. Total U.S. permanent implant procedures, as well as U.S. trial procedures, declined in the fourth quarter. However, NVRO is likely to witness growth opportunities in an underpenetrated SCS market with the launches of HFX AdaptivAI in the United States and HFX iQ in the European Union. Also, the company’s diversification into the SI joint fusion is likely to generate additional revenues.However, NVRO continues to make progress in shifting additional work to the Costa Rica manufacturing facility to further leverage its investment there and continue on the path toward achieving a long-term gross margin in the mid-70% range and driving toward profitability.Zacks Rank and Key PicksNevro currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the industry have been discussed below:Masimo MASI, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 6.1% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.41%. Its shares have risen 63.5% against the industry’s 1.9% decline in the past six months.Alphatec ATEC, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 40% for 2025. Its earnings missed estimates in each of the trailing four quarters, delivering an average negative surprise of 12.60%.ATEC’s shares have gained 77% against the industry’s 1.9% decline in the past six months.Avenna Healthcare AVAH, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 666.7% for 2025.AVAH delivered a trailing four-quarter average earnings surprise of 135.00%. The company is expected to release fourth-quarter results in March. Its shares have lost 21.8% in the past six months compared with the industry’s 2.9% decline.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Masimo Corporation (MASI): Free Stock Analysis Report Alphatec Holdings, Inc. (ATEC): Free Stock Analysis Report Nevro Corp. (NVRO): Free Stock Analysis Report Aveanna Healthcare Holdings Inc. (AVAH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks