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What: Shares of Symmetry Medical (NYSE:SMA), a medical device and surgical instruments maker, fell as much as 19% following a double miss in its first-quarter earnings results.
So what: For the quarter, revenue fell 2% to $98.9 million from the year-ago period as adjusted EPS fell 28% to $0.09. Total OEM solutions revenue helped abate some of the fall as they rose 4% while surgical revenue declined 17%. Wall Street had been looking for Symmetry to earn $0.15 per share on $104.3 million in revenue. Despite the miss on both fronts, Symmetry stuck to its full-year forecast and still managed to boost gross margin by 40 basis points to 25.4%.
Now what: Despite the miss, this is a company I feel will head higher over the long-term. Most of Symmetry's revenue is from the recurring/OEM side of the business, which provides a somewhat steady outlook. As baby boomers age, the need for medical instrumentation and implants is only going to increase, giving Symmetry and its peers ample opportunity to succeed. Based on the midpoint of managements' guidance, I still consider Symmetry an intriguing opportunity at 14 times this year's earnings.
Craving more input? Start by adding Symmetry Medical to your free and personalized Watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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