NuVasive sees FY18 revenue growth in 'mid-single digits over FY17'
Consensus $1.09B. The company's preliminary outlook for 2018 includes full year revenue growth in the mid-single digits over 2017 revenue results, at least 100 basis points of expansion in non-GAAP operating margin, adjusted EBITDA now in a range of approximately $290 to $300 million, and a substantial tax savings resulting from the tax reform legislation passed late in 2017. When the company provides its full financial outlook for 2018, it will include the expected financial impact of the company's acquisition of SafePassage. In Dec. 2017, NuVasive announced it had entered into an agreement to acquire SafePassage to bolster its NuVasive Clinical Services business and solidify its leadership position as the largest provider of outsourced intraoperative neuromonitoring services. This joining of forces will strengthen the NuVasive IONM business line with more than 550 neurophysiologists and oversight physicians in the U.S.-allowing for the delivery of services to over 1,000 customers and 3,000 surgeons. The acquisition of SafePassage remains on track and is anticipated to close in Jan. 2018, subject to customary closing conditions. The company will also provide additional commentary on the expected impact of U.S. tax reform. NuVasive expects to realize substantial tax savings as a result of the recent passage of the tax bill, An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, which provides for a reduction of the U.S. corporate tax rate from 35% to approximately 21%. The legislation is poised to significantly reduce the future corporate tax rate for NuVasive, which prior to the enactment of the tax overhaul was expected to be approximately 33% on a non-GAAP basis in 2018.