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.