Symmetry Medical Earnings: Here’s Why Investors are Excited Now

Symmetry Medical, Inc. (NYSE:SMA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.31%.

Symmetry Medical, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 35.71% to $0.09 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Decreased 0.43% to $101.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Symmetry Medical, Inc. reported adjusted EPS income of $0.09 per share. By that measure, the company beat the mean analyst estimate of $0.08. It beat the average revenue estimate of $99.01 million.

Quoting Management: Thomas J. Sullivan, President and Chief Executive Officer of Symmetry Medical, stated, “We are pleased with our second quarter results, which reflect growth in the OEM Solutions segment and a stabilization of the integration challenges in our Symmetry Surgical segment. While we expect the Symmetry Surgical segment to be pressured for the remainder of the year, we have made measurable progress addressing the integration issues as evidenced by the slight sequential growth. Moving forward our team will continue to focus more time on building customer relationships and our Symmetry Surgical brand, leading to a gradual improvement in year over year results. In OEM Solutions, our results reflect the stable orthopedic procedure environment and a greater than expected impact to implant revenue from the timing of orders and inventory adjustments from certain customers. We continue to see market weakness in Europe, and slower than expected large new product launches and supplier rationalization efforts constraining capital spending. Accordingly, we are reiterating the guidance provided in June, which includes the potential for sequential revenue and margin improvement in the second half of the year.”

Key Stats (on next page)…

Revenue increased 3.08% from $98.86 million in the previous quarter. EPS increased 50% from $0.06 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.19 to a profit $0.13. For the current year, the average estimate has moved down from a profit of $0.63 to a profit of $0.44 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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