Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of orthopedic medical company Wright Medical Group (NAS: WMGI) rose as much as 13% today after the company released earnings.
So what: Sales rose just 4% to $132.5 million in the second quarter, just as analysts had expected. Adjusted earnings per share were $0.23, which was must stronger than the $0.17 per share analysts had expected.
Now what: Management was pleased with continued double-digit earnings per share growth, but I'm a little less excited about the slow revenue growth. Shares currently trade at 18 times forward earnings, and unless revenue begins to grow more quickly that isn't a great value. For now I'm going to stay on the sidelines and wait for a little more value in the stock price.
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At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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