On Apr 3, we retained
) at Neutral, following its fourth-quarter results. Although both
revenues and earnings missed estimates, it managed to grow
COVIDIEN PLC (COV): Free Stock Analysis
HANGER ORTHOPED (HGR): Free Stock Analysis
NUVASIVE INC (NUVA): Free Stock Analysis
SYMMETRY MEDICL (SMA): Free Stock Analysis
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Why the Retention?
On Feb 21, Symmetry posted fourth-quarter 2012 adjusted earnings
of 15 cents a share, which missed the Zacks Consensus Estimate of
19 cents. The year-ago earnings were 3 cents a share.
Additionally, revenues jumped 26% year over year to $106.6
million in the fourth quarter, led by strong sales in the
Original Equipment Manufacturer ("OEM") Solutions and Symmetry
Surgical businesses. However, reported revenues were lower than
the Zacks Consensus Estimate of $109 million.
The company's earnings have failed to beat the Zacks Consensus
Estimates in 2 out of the last 4 quarters with an average
negative surprise of 4.82%. However, it managed to meet the
estimates in the first quarter of 2012 and beat estimates in the
third quarter. Following the earnings release, the Zacks
Consensus Estimate for 2013 dropped by 8.8% to 73 cents per share
but jumped by 32.9% to 97 cents per share for 2014.
Warsaw, Ind.-based Symmetry is an instruments supplier to
orthopedic device manufacturers. Its Original Equipment
Manufacturer (OEM) business is showing gradual signs of stability
on the back of higher Instrument sales and a turnaround in
implant sales but the cases segment continues to be a drag.
Symmetry Surgical is growing at a healthy pace on the back of
Symmetry is taking strategic initiatives to improve operating
efficiency and launch innovative products. Margins are also
improving. However, uncertainty related to growth in global
orthopedic procedures as well as a tight capital spending
environment is affecting the core OEM business. The company's
high level of indebtedness along with currency fluctuations
remain areas of concern.
Other Stocks to Consider
Medical products companies such as
) warrant a look. While Nuvasive carries a Zacks Rank #1 (Strong
Buy), the other 2 stocks carry a Zacks Rank #2 (Buy).