Wright Medical Group (WMGI) Tops Q4 EPS by 6c, Revenues Beat; Offers FY19 Revenue Guidance

Wright Medical Group (NASDAQ: WMGI) reported Q4 EPS of $0.11, $0.06 better than the analyst estimate of $0.05. Revenue for the quarter came in at $238.15 million versus the consensus estimate of $236.99 million.

• Fourth Quarter 2018 Net Sales, Including Cartiva, of $238 Million; Full-Year 2018 Net Sales, Including Cartiva, of $836 Million
• Cartiva Revenue of $9.5 Million From October 10, 2018 Closing Date Through Year-End
• Fourth Quarter 2018 Net Loss From Continuing Operations of $23 Million; Non-GAAP Adjusted EBITDA From Continuing Operations of $44 Million
• Full-Year 2018 Net Loss From Continuing Operations of $169 Million; Non-GAAP Adjusted EBITDA From Continuing Operations of $117 Million
• Company Provides Full-Year 2019 Net Sales Guidance of $954 Million to $966 Million
• Company Provides Full-Year 2019 Non-GAAP Adjusted EBITDA Guidance of $160 Million to $170 Million
• Company Now Anticipates Exceeding 20% Non-GAAP Adjusted EBITDA Margin for Full Fourth Quarter 2019

Robert Palmisano, president and chief executive officer, commented, “As previously reported, our fourth quarter results represent an outstanding performance across all our businesses. This performance was driven by continued strong shoulder growth in the quarter, which included the ongoing launch of our PERFORM Reversed glenoid and continued contributions from our SIMPLICITI shoulder system. We anticipate that these products, as well as accelerating adoption of our BLUEPRINT enabling technology and the upcoming launch of our REVIVE revision shoulder system, will continue to drive strong shoulder sales growth in 2019 and beyond. We also had strong adjusted EBITDA with 210 basis points of EBITDA margin expansion for the full-year and our adjusted gross margins of nearly 80% are some of the best in high-growth medtech.”

Palmisano further commented, “In our U.S. lower extremities business, we got off to a very strong start with Cartiva revenue of $9.5 million, which exceeded our expectations in the fourth quarter. On January 1, Cartiva was fully launched with our U.S. lower extremities sales force, including the integration of the former Cartiva distributors that we have chosen to retain. We also saw continued strong growth in our core products as well as in total ankle. Our U.S. biologics business continued to be driven by the ongoing roll-out of AUGMENT Injectable. We intend to continue to focus on strong execution and new product launches throughout 2019.”

GUIDANCE:

Wright Medical Group sees FY2019 revenue of $954-966 million, versus the consensus of $958.73 million.

For earnings history and earnings-related data on Wright Medical Group (WMGI) click here.

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