Nevro(US:NVRO) ZACKSยท2024-06-04 17:40Core Viewpoint - Nevro Corp. is positioned for growth due to its R&D capabilities and strong performance in Q1 2024, despite facing competition and reliance on third-party payors [1][2]. Company Performance - Nevro has a market capitalization of $343.4 million and projects a growth rate of 13.8% for 2024, with earnings surpassing estimates in three of the last four quarters, averaging a surprise of 28.87% [2]. - The company reported better-than-expected results in Q1 2024, with robust domestic revenues and an increase in U.S. permanent implant procedures [9]. Product Development and R&D - Nevro is enhancing its Senza platform and developing new indications to improve patient outcomes and expand access to HF10 therapy [3]. - The HFX iQ system accounted for 58% of permanent implant procedures in Q1 2024, indicating strong adoption [4]. - The acquisition of Vyrsa allows Nevro to enter the SI joint fusion market, expected to generate additional revenues in H2 2024 [5]. Clinical Evidence - Data from the SENZA-PDN RCT showed improvements in sensory function for diabetes patients, potentially reducing ulceration and amputation risks [7]. - The SENZA NSRBP trial published 24-month data demonstrating significant improvements in pain, function, and quality of life for patients using high-frequency SCS [8]. Market Challenges - Nevro's success is contingent on third-party payors providing adequate coverage for its products, which is critical for consumer acceptance [11]. - The company faces stiff competition in the medical device industry, necessitating a strong consumer approval for its therapies [12]. Estimate Trends - There has been a negative estimate revision trend for 2024, with the loss estimate narrowing from $2.54 to $2.12 per share in the last 30 days [13]. - The Zacks Consensus Estimate for Q2 2024 revenues is $107.1 million, reflecting a 1.6% decline from the previous year [13].