Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

In-Line Doesn't Cut It For NuVasive

Small-cap spine specialist NuVasive (NASDAQ:NUVA) may have reported basically in-line numbers for the second quarter, but that's not helping its shareholders today. Although the company continues to grow share in the stagnant U.S. spine market, investors are jittery about management's ability to hit the bold target of 20%-plus operating margins down the road. Add in a subpoena from the OIG, persistent worries that the spine market opportunity isn't what it used to be, and a fairly robust valuation, and it's not as hard to understand the big drop in the shares.

A Messy Q2

NuVasive seems to have a knack for messier-than-usual financials, and this quarter was certainly no exception. As-reported revenue was a little better than expected...

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