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What: Shares of orthopedic medical company Wright Medical Group
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.
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