Why Was Wright Medical Group Stock Up 30% On Monday?

Wright Medical Group (NASDAQ: WMGI), a medical device maker that caters to the orthopedic market, saw its stock rally by over 30% on Monday, after news emerged that it would be acquired by larger rival Stryker Corporation. Stryker will pay $30.75 in cash for each of Wright’s outstanding shares, valuing the company’s outstanding equity at ~$4 billion. For perspective, the stock closed at $29.04 on Monday. The deal is expected to close over the second half of 2020. Stryker indicated that Wright’s expertise in devices for the upper extremities (shoulder, elbow, wrist, and hand) would complement its existing product lines. Below, we take a look at how Wright has fared in recent years and the outlook for the company.

View our interactive dashboard analysis on Why Did Wright Medical Group Stock Rally On Monday?

How does Wright Medical Group N.v.’s Revenue Growth in 2018 compare with that in prior periods and what’s the forecast?

Total Revenues for Wright Medical Group N.v. increased from $0.7 Billion to $0.8 Billion in 2018, an increase of 12%.

This compares with Total Revenues growth of:

• 36% in 2015
• 70% in 2016
• 8% in 2017

We expect Total Revenues growth to be 11% in 2019.

How does Wright Medical Group N.v.’s Total Expense in 2018 compare with that in prior periods and what’s the forecast?

Total Expense for Wright Medical Group N.v. increased from $0.8 billion in 2017 to $1 billion in 2018.

This compares with Total Expense growth of:

• 34% in 2016
• -3% in 2017

We expect Total Expense growth to be -11.5 % in 2019.

How does Wright Medical Group N.v.’s EBT in 2018 compare with that in prior periods and what’s the forecast?

EBT for Wright Medical Group N.v. decreased from -$100 million in 2017 to -$170 million in 2018.

We expect EBT to turn positive in 2019, coming in at about $40 million.

How do Wright Medical Group N.v.’s Net Income and EPS in 2018 compare with that in prior periods and what’s the forecast?

For more details on Wright Medical Group N.v.’s Net Income and EPS, view our interactive dashboard analysis.

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