Wright Medical Group Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1440206, ~/Articles/ArticleHandler.aspx, 10/2/2014 12:36:52 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement