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Specialty medical device maker Nevro (NYSE: NVRO) didn't make for an inspiring investment on Thursday. Its stock price dipped marginally following the company's release of its fourth-quarter earnings report Wednesday. That contrasted with the S&P 500 index, which gained nearly 2.5%.

Top- and bottom-line beats for the fourth quarter

For the fourth quarter, Nevro's revenue inched up by 2% year over year to just over $116 million. On the bottom line, it narrowed its GAAP net loss considerably to slightly over $7 million ($0.25 per share), against a more than $17 million deficit in the same quarter a year before.

Both headline figures were notably better than analysts had expected. Collectively, prognosticators following Nevro were modeling for just shy of $112 million on the top line, and a much steeper net loss of $0.49 per share.

In the earnings release, Nevro said that its recent "commercial realignment" and other strategic measures were largely responsible for the improvements. It also attributed some of its improvements to the acquisition of peer medical device specialist Vyrsa Technologies. That deal, reached toward the end of 2023, saw Nevro pay $40 million in cash up front for Vyrsa. It's also on the hook for up to $35 million in milestone payments.

Guidance was proffered, and a new board member was named

Nevro also published guidance for the first quarter and the year. For 2024, it's expecting revenue in the range of $435 million to $445 million. This would shake out to growth of 2% to 5%. Its non-GAAP (adjusted) loss before interest, taxes, depreciation, and amortization is forecast to land in the range of $8 million to $14 million, down from nearly $18 million in 2023.

The company did not provide a net income forecast.

It did announce that it has entered into a cooperation agreement with Engaged Capital, an activist investing firm that disclosed a stake in Nevro in December. Pursuant to that agreement, Nevro appointed tech and finance sector executive Kirt Karros to its board of directors.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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