Wright Medical Group
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Wright Medical Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Wright Medical Group logged revenue of $126.9 million. The 12 analysts polled by S&P Capital IQ expected to see sales of $121.7 million on the same basis. GAAP reported sales were 8.3% lower than the prior-year quarter's $138.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.13. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.11 per share on the same basis. GAAP EPS of $0.03 for Q4 were 85% lower than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.1%, 270 basis points worse than the prior-year quarter. Operating margin was 5.5%, 530 basis points worse than the prior-year quarter. Net margin was 0.9%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $126.5 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $491.5 million. The average EPS estimate is $0.63.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 42 members out of 61 rating the stock outperform, and 19 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Wright Medical Group a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wright Medical Group is hold, with an average price target of $16.28.
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