Benzinga | Nov 10, 2021 07:18AM EST

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

* NuVasive Inc (NASDAQ: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.