NuVasive's Q3 Earnings Hit By COVID-19, Staff Shortage; Cuts FY21 Guidance

NuVasive Inc NUVA reported Q3 net sales of $270.8 million, an 8.3% decrease on a reported and constant currency basis, missing the consensus of $291.79 million.
"The third quarter presented unexpected challenges for elective surgical procedures due to the negative impact from the resurgence of COVID-19 and healthcare staffing shortages," said J. Christopher Barry, CEO.
The adjusted gross margin reached 72.7%, up from 71.3% a year ago, while the operating margin was 11.2%.
Adjusted EPS fell to $0.32 from $0.55 a year ago and below the consensus of $0.54.
Cash, cash equivalents, and investments were $234.6 million.
Guidance: NuVasive lowered its FY21 guidance based on year-to-date performance due to the unanticipated variability in elective surgical volumes.
It expects sales of 1.132 billion−$1.142 billion, down from prior guidance of $1.190 billion−$1.210 billion.
The Company forecasts adjusted EPS of $1.73−$1.83 and operating margin of 12.5%−12.9%, down from previous guidance of $2.25−$2.35 and 14.4%−14.9%, respectively.
Price Action: NUVA shares closed at $55.11 on Tuesday.