Wright Medical Group Shares Popped: What You Need to Know (WMGI)

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 orthopedic medical company Wright Medical Group (Nasdaq: WMGI ) rose as much as 13% today after the company released earnings.

So what: Sales rose just 4% to $132.5 million in the second quarter, just as analysts had expected. Adjusted earnings per share were $0.23, which was must stronger than the $0.17 per share analysts had expected.

Now what: Management was pleased with continued double-digit earnings per share growth, but I’m a little less excited about the slow revenue growth. Shares currently trade at 18 times forward earnings, and unless revenue begins to grow more quickly that isn’t a great value. For now I’m going to stay on the sidelines and wait for a little more value in the stock price.

Interested in more info on Wright Medical Group? Add it to your watchlist.

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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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