Wright Medical Group Shares Popped: What You Need to Know

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What: Shares of Wright Medical Group (Nasdaq: WMGI  ) surged more than 11% in early trading on higher than average volume after the company beat fourth-quarter estimates.

So what: Revenue increased 6% to $138.3 million. Adjusted profit improved 7% to $0.29 per share. Analysts were calling for $130.2 million and $0.21 per share, respectively.

Now what: Interestingly, for as strong as Wright's fourth-quarter results were, guidance was lower than what the Street had been calling for. Management is calling for $517 million to $535 million in 2011 revenue, resulting in $0.69 to $0.76 in earnings per share. Analysts were expecting $537.8 million and $0.77, respectively.

It's unknown whether investors care about the miss on guidance, but the stock is up just higher than 7% as of this writing versus the 11% pop it enjoyed earlier today. Skeptics could be throwing water on the fire started by news of the fourth-quarter beat.

Interested in more info on Wright Medical Group? Add it to your watchlist. You can also try any of our Foolish newsletter services free for 30 days.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. 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 is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.

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10/26/2016 11:26 AM
WMGI $22.85 Down -1.30 -5.38%
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