Wright Medical Group, Inc.
) posted a broader loss of $8.2 million or 18 cents per share in
the third quarter of the year compared with $1.6 million or 4
cents in the same quarter of 2012. With this, earnings meet the
Zacks Consensus Estimate.
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WRIGHT MEDICAL (WMGI): Free Stock Analysis
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Reported net loss was $124.5 million or $2.68 per share, compared
with $4.1 million or 11 cents in the third quarter of 2012. Net
revenues increased 13.3% (14% in constant currency) to $57.6
million during the quarter, exceeding the Zacks Consensus
Estimate of $56.0 million.
Gross profit rose 11.3% to $43.6 million from $39.2 million a
year ago but gross margin decreased 200 basis points (bps) to
75.6% from 77% a year ago. Adjusted operating loss significantly
increased to $11.5 million from $1.0 million a year ago. Adjusted
operating (loss) margin rose to 19.9% from 2.0% a year ago.
WMGI had cash and cash equivalents and marketable securities of
$279.2 million as of Sep 30, 2013, down from $333.0 million as of
Dec 31, 2012 due to the closing of the BioMimetic transaction and
expenses associated with the MicroPort transaction. Long-term
obligations rose to $265.0 million from $258.5 million as of Dec
In the first nine months of the year, cash flow from operations
declined significantly to $5.7 million from $57.8 million in the
same period a year ago. Capital expenditures increased 69.4% to
$22.5 million from $13.3 million a year ago.
Wright Medical narrowed its revenue guidance for 2013 to
$237-$240 million from $235-$240 million, which has incorporated
short-term dis-synergies due to the previously announced
transaction with MicroPort. However, WMGI reiterated its adjusted
earnings per share guidance of a loss of 55 to 59 cents, based on
approximately 45.3 million shares outstanding.
Arlington, Tenn.-based Wright Medical Group is a global
orthopaedic device company specializing in the design,
manufacture and marketing of reconstructive joint devices and
bio-orthopaedic materials. Currently, WMGI retains a Zacks Rank
Other medical stocks that are performing well include
Bio-Rad Laboratories, Inc.
Hill-Rom Holdings, Inc.
INSYS Therapeutics, Inc.
). All of them carry a Zacks Rank #1 (Strong Buy).