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Why NxStage Medical Inc. Stock Surged Higher

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What's happening: Shares of NxStage Medical , a developer of medical devices used to treat kidney failure and other blood-related treatments, surged higher by as much as 13% after reporting better than expected third-quarter earnings results before the opening bell.

Why it's happening: For the quarter, NxStage Medical reported a 13% increase in revenue to a record $75.3 million, which happened to be higher than the prior guidance issued by the company of $71 million-$72.5 million issued during its second-quarter earnings release. NxStage specifically cites the rapid adoption of its NxStage System One hemodialysis machine at home, in both domestic and international markets, as the reason for its revenue surge. Overall, home revenue rose 20% year over year to $40.4 million, with critical care revenue also jumping 24% year over year to $13.3 million.

Net loss for the quarter totaled $6.7 million, or $0.11 per share, which was a bit wider than the $5 million net loss, or $0.08 per share, it reported in the year-ago quarter. However, the net loss was also smaller than the company's prior guidance and did include $4.1 million in losses associated with the "market development activities" associated with its NsStage Kidney Care. Comparatively speaking, Wall Street had been expecting just $71.8 million in revenue and a loss of $0.13 per share.

Furthermore, NxStage boosted its prior full-year sales guidance to a fresh range of $296 million-$298 million (prior: $290 million-$293 million), and narrowed its full-year loss estimate to $24 million-$26 million (prior: $23 million-$27 million). By comparison, the consensus on Wall Street had been calling for only $292.2 million in revenue for the full year.

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The article Why NxStage Medical Inc. Stock Surged Higher originally appeared on Fool.com.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool owns shares of, and recommends NxStage Medical. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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