Wright Medical Stays Neutral - Analyst Blog
22 Mayo 2013 - 2:10PM
Zacks
On May 21, 2013, we reiterated our
Neutral recommendation for Wright Medical Group
Inc. (WMGI) 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 Japan.
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 optimistic about Becton, Dickinson and
Company (BDX) and Heartware International
Inc. (HTWR) each of which carries a Zacks Rank #2 (Buy)
and are expected to do well. In addition, Conceptus, Inc. (CPTS)
carries a Zacks Rank #1 (Strong Buy) and warrants a look.
BECTON DICKINSO (BDX): Free Stock Analysis Report
CONCEPTUS INC (CPTS): Free Stock Analysis Report
HEARTWARE INTL (HTWR): Free Stock Analysis Report
WRIGHT MEDICAL (WMGI): Free Stock Analysis Report
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