Nevro (NVRO) Hits New 52-Week High: What's Driving The Stock?
Zacks Investment Research | Dec 25, 2019 10:06PM ET
Shares of Nevro Corp. (NYSE:NVRO) scaled a new 52-week high of $117.51 on Dec 24, closing the session marginally lower at $116.65. In fact, the stock has rallied 36.8% since its third-quarter earnings announcement on Nov 6.
Higher demand for implants, solid U.S. patient trial growth and raised guidance for 2019 prompted the rally.
Let us take a closer look at the factors driving growth.
Robust Q3 Earnings
The company exited the third quarter on a promising note, with narrower loss and higher revenues than the Zacks Consensus Estimate.
In the quarter under review, international revenues were up 5% at constant currency.
U.S. revenues for the quarter also registered a 5% year-over-year uptick. U.S. patient trials and permanent implants each witnessed 18% growth on a year-over-year basis.
Gross profit in the quarter rose 4% year over year.
The lifted revenue outlook for 2019 buoys optimism among investors, indicating the continuation of this bullish trend through the rest of the year.
Other Encouraging Factors
In November 2019, Nevro commercially launched the Senza Omnia Spinal Cord Stimulation System on the heels of attaining the FDA approval for the same. Investors have been optimistic about the company’s growth prospects since the crucial development.
Meanwhile, Nevro has been witnessing a great run on the bourses in the past year. The stock has surged 211.2%, higher than the broader Zacks Investment Research
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