Nevro(NVRO) ZACKS·2025-01-15 18:25Revenue and Financial Performance - Full-year 2024 worldwide revenues are expected to be in the range of $408 million-$409 million, representing a year-over-year decrease of approximately 4% compared to 2023 [1] - Full-year 2024 U.S. revenues are expected to be in the range of $352.5 million-$353.5 million, also reflecting a 4% decrease compared to 2023 [1] - Fourth-quarter 2024 worldwide revenues are expected to be in the range of $105 million-$106 million, representing a decrease of 9% to 10% compared to the same period in 2023 [10] - Fourth-quarter 2024 U.S. revenues are expected to be in the range of $91 million-$92 million, also reflecting a decrease of 9% to 10% compared to the same period in 2023 [10] - Cash, cash equivalents, and short-term investments are expected to be approximately $292.5 million as of Dec 31, 2024, an increase of approximately $15.5 million from Sept 30, 2024 [6] Market and Share Performance - Shares of the company have lost 27.1% in the past three months against the industry's 0.2% growth [8] - The S&P 500 has gained 0.8% during the same time frame [8] - Investors reacted negatively to the preliminary results, with the company's shares declining nearly 8% at yesterday's closing [5] Product and Clinical Developments - New data highlights long-term improvements in pain intensity for patients using High-Frequency SCS therapy, reinforcing its clinical benefits and positioning the company as a leader in pain management [3] - The publication of new data demonstrates that the SI Joint Fusion System offers significant advantages over traditional approaches, improving surgical outcomes [7] - The company received CE Mark Certification in Europe for its HFX iQ SCS system, which is likely to open up opportunities for market expansion in Europe and globally [12] Strategic Initiatives and Investments - Full-year 2024 worldwide revenues are higher than the guidance provided in November 2024, primarily due to greater-than-anticipated spinal cord stimulation (SCS) device replacement procedures in the fourth quarter [11] - The company reallocated investments to its direct-to-consumer (DTC) advertising efforts in the third quarter of 2024, with anticipated benefits ramping throughout 2025, particularly in the second half of the year [11] Industry Comparisons - Masimo (MASI) has seen its shares rise 31.7% against the industry's 1% decline in the past six months, with an average earnings surprise of 17.10% in the trailing four quarters [4] - ResMed (RMD) has an estimated earnings growth rate of 21.1% for 2025, with shares rising 31.6% against the industry's 12.8% decline in the past year [4] - Abbott (ABT) has an estimated earnings growth rate of 10% for 2025, with shares rising 8.5% in the past six months compared to the industry's 7.2% growth [9] Zacks Rankings and Estimates - The company currently carries a Zacks Rank 3 (Hold) [13] - The Zacks Consensus Estimate for full-year 2024 worldwide revenues is $403.3 million, below the preliminary figure [1] - The Zacks Consensus Estimate for fourth-quarter 2024 worldwide revenues is $100 million, below the preliminary figure [10]