Nevro Stock Tanks After Q2 Earnings Miss, Analysts Move To Sidelines

Nevro Corp NVRO posted second-quarter revenue of $102.3 million, +81% Y/Y, missing the consensus of $107.7 million.
Total U.S. permanent implant procedures increased 60%, while trial procedures increased 45%, but when compared to Q2 FY19, implant procedures were up 5%, and trial procedures decreased 8%.
The volume is impacted primarily by a continued reluctance to seek interventional therapies.
Nevro posted a Q2 loss of $(0.62) per share lower than $(1.21) a year ago, beating the consensus of $(0.73).
It reported an adjusted EBITDA of $2.9 million, compared to a loss of $22 million.
"The recovery of procedural volumes in the pain market generally and the SCS market specifically has been slower than we anticipated, impacting not only Q2 revenues but in the case of lower trial procedures, revenue in future months as well," said D. Keith Grossman, Chairman, CEO & President of Nevro.
Guidance: Nevro expects Q3 revenue of $90 million - $93 million (consensus $115.35 million), representing a 14% - 17% Y/Y decrease and 7% - 10% decrease compared to Q3 FY19.
Forecasts Q3 FY21 adjusted EBITDA loss of $10 million - $12 million.
Analysts Reaction: William Blair downgraded Nevro to Market Perform.
Piper Sandler downgraded the stock from Overweight to Neutral and lowered the price target from $200 to $125.
SVB Leerink maintained NVRO with an Outperform but lowered the price target from $210 to $147.
Citigroup downgraded Nevro from Buy to Neutral and cut the price target from $198 to $125.
Wells Fargo downgrades NVRO stock from Overweight to Equal-Weight, with a $122 price target.
JMP Securities maintained Nevro with a Market Outperform and reduced the price target from $190 to $160.
Canaccord Genuity too downgraded the stock from Buy to Hold, with a price target of $112.
Price Action: NVRO shares are down 26.9% at $108.10 during the market session on the last check Thursday.

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