Why Wright Medical Group Shares Popped
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 medical-device makerWright Medical Group (NAS: WMGI) have popped today by upward of 10% after the company reported earnings and strong guidance.
So what: Revenue in the first quarter came in at $126.7 million, with net income of $4.6 million, or $0.12 per share. Both top and bottom line results registered a beat, as the Street was looking for just $124.5 million in sales and a profit of $0.09 per share.
Now what: Full-year 2012 revenue is expected to be between $472 million and $489 million, with earnings per share of $0.26-$0.36, far above the $0.16 per-share profit that investors were looking for. CEO Robert Palmisano said the foot and ankle segments saw strong sales and the company's planned transition to direct sales is proceeding as planned.
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