On May 21, 2013, we reiterated our Neutral recommendation for
Wright Medical Group Inc.
) based on its first quarter 2013 earnings results and retention
of sales guidance for 2013.
On Apr 30, Wright Medical announced earnings results for the
reported quarter. Its loss per share of 2 cents was narrower than
the Zacks Consensus Estimate of loss of 6 cents per share.
Net sales in the quarter were $120.4 million, down 5% year
over year in reported terms (down 3% on a constant currency
basis), missing the Zacks Consensus Estimate of $123 million.
During the reported quarter, the company's growth in worldwide
ankle and foot franchise was negated by loss of client base in
OrthoRecon business in the domestic market and price decline in
The combination with BioMimetic Therapeutics will improve
competitive advantage. However, dilution is expected to
contribute to poor results for 2013.
The Zacks Consensus Estimate for 2013 has gained a penny to
reach a loss of 28 cents per share over the past 30 days. The
Zacks Consensus Estimate for 2014 has dropped 2 cents to roost at
1 cent over the same time frame.
Our views are moderated by possible lingering effect of
compliance issues and intense competition from larger orthopedic
players. Despite being a niche player with a focus on
extremities, the company remains exposed to volume headwind.
The stock carries a Zacks Rank #3 (Hold). We are more
Becton, Dickinson and Company
Heartware International Inc.
) each of which carries a Zacks Rank #2 (Buy) and are expected to
do well. In addition, Conceptus, Inc. (
) carries a Zacks Rank #1 (Strong Buy) and warrants a look.
BECTON DICKINSO (BDX): Free Stock Analysis
CONCEPTUS INC (CPTS): Free Stock Analysis
HEARTWARE INTL (HTWR): Free Stock Analysis
WRIGHT MEDICAL (WMGI): Free Stock Analysis
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