It’s a new low for Nevro (NYSE:NVRO), as the healthcare stock suffered a double-digit loss in Tuesday afternoon’s trading. The loss was sufficient to send Nevro shares down to a level not seen in the last 52 weeks, and joins the last five weeks or so in producing new lows for the stock.
So what happened to Nevro this time to send it plunging once more? Guidance over the current quarter’s results, which was cut after Monday’s close. Analyst Adam Maeder noted that after seeing preliminary revenue results for the second quarter, the guidance for the rest of the year is looking far too optimistic. Thus, Maeder looks for Nevro to retrace its guidance downward once more when talking about the full-year outlook on its next earnings call.
Nevro dropped its second quarter guidance from a range between $110 million and $112 million to a range between $106 million and $108 million. The first range was bad enough, but it was in-line with consensus figures of $111.2 million. However, the second range capitulates outright. Nevertheless, Nevro may have a bit of hope afoot as it recently named a new Chief Commercial Officer in Greg Siller. Siller, a 17-year veteran of Stryker and its International Spine business, will be tasked with developing new markets and building on revenue growth.
Analysts are fairly evenly split on Nevro’s outlook, and overall, it’s a wait-and-see scenario. Analyst consensus calls Nevro stock a Hold with four Buy ratings, four Holds and two Sells. However, for those willing to take the plunge, Nevro’s average price target of $43.40 constitutes 83.82% upside potential.
