SYK - Nevro hits 52-week low after Q2 guidance cut

2023-06-06 14:00:00 ET

Nevro ( NYSE: NVRO ) shed ~13% on Tuesday  to reach a new 52-week low after the medical device maker lowered its revenue guidance for Q2 2023, prompting Piper Sandler to warn that a downward revision for its full-year outlook is also on the cards.

In a press release Monday after the close, Nevro ( NVRO ) of Redwood City, California, trimmed its Q2 revenue outlook to $106M – $108M from $110M – $112M previously, compared to $111.2M in the consensus.

"Given where we now expect to finish the second quarter, we are taking the opportunity to update our second quarter revenue guidance at this time," CEO Kevin Thornal noted, adding that the company will also revise its full-year outlook on Aug. 1 during its Q2 earnings call.

"With the 2Q preliminary revenues in-hand, we continue to believe the outstanding FY23 revenue guidance ($445-455M) is too lofty," Piper Sandler analyst Adam Maeder wrote.

Maeder argues that the reasons behind the commercial shortfall remained unclear, and the company didn't provide additional details. "And we expect Nevro to make a downward revision to its full-year outlook during the next earnings call," Maeder, who has an Underweight rating on NVRO, added.

Also on Monday, Nevro ( NVRO ) announced the appointment of Greg Siller as the company's new Senior Vice President and Chief Commercial Officer, effective June 19. Siller, a former executive at Stryker's ( SYK ) Interventional Spine business, will replace Niamh Pellegrini, who is departing NVRO on June 9.

More on Nevro

• RBC Capital starts Nevro at outperform, views stock as undervalued
• Nevro: Potentially Better Than Traditional SCS Treatment For Pain And Undervalued

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