Wright Medical Group Inc. (NASDAQ:WMGI) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Wright Medical Group Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.02 in the quarter versus EPS of $0.17 in the year-earlier quarter.
Revenue: Decreased 4.94% to $120.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Wright Medical Group Inc. reported adjusted EPS loss of $0.02 per share. By that measure, the company beat the mean analyst estimate of $-0.05. It missed the average revenue estimate of $121.15 million.
Quoting Management: Robert Palmisano, president and chief executive officer, commented, “We delivered a strong start to 2013 with our first quarter results. Implementation of our new Vital Few initiatives is on track, with continued positive progress in driving sales productivity gains in our foot and ankle business and developing plans for building a growing, global OrthoRecon business. Despite the impact of two less selling days in the U.S. in the first quarter, our global foot and ankle business had strong constant currency growth of 19%, and our U.S. foot and ankle growth accelerated to 17%, both of which were well ahead of last year’s annual growth rates and reinforce our leadership position in this market.”
Key Stats (on next page)…
Revenue decreased 2.49% from $123.48 million in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $0.01 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 $0.02 to a loss $0.09. For the current year, the average estimate has moved down from a profit of $0.08 to a loss of $0.29 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)