Wright Medical Group (WMGI) Misses Q2 EPS by 3c

Wright Medical Group (NASDAQ: WMGI) reported Q2 EPS of ($0.48), $0.03 worse than the analyst estimate of ($0.45). Revenue for the quarter came in at $72.4 million versus the consensus estimate of $74.17 million.

Robert Palmisano, president and chief executive officer, commented, “Our second quarter results reflected continued strong growth and the benefits of additional foot and ankle products from our Solana Surgical and OrthoPro transactions. As anticipated, we did experience some minor dis-synergies in the U.S. associated with these transactions during the quarter as well as the impact of one less selling day. We are confident that there will be strong acceleration in the second half of the year as we get the impacts of these anticipated, non-recurring events mostly behind us, benefit from an expanded sales force from the recent acquisitions and launch new products, in particular our new INFINITY ankle. Despite a significant stocking order that occurred last year in the second quarter, our International business grew 28% and continues to make good progress in our key markets. Execution of our Vital Few initiatives is on track, with continued focus on driving sales productivity gains in our U.S. foot and ankle business and building a fast-growing, international business.”

Palmisano continued, “We were particularly pleased to see another strong quarter of total ankle replacement sales growth, which was 29%, despite challenging comparisons and one less sales day this quarter. We are also off to a strong start with our new INFINITY ankle, which we launched in June. The INFINITY ankle extends our leadership position and multi-year competitive lead in total ankle technology and represents a significant near-term opportunity for Wright. This technology, combined with our new, streamlined go-to-market program should enhance our ability to lead in this underpenetrated segment. With the addition of INFINITY to our existing INBONE ankle products, Wright is first to offer best-in-class total ankle replacement systems that address the continuum of care for end-stage ankle arthritis patients. We expect INFINITY’s physician requested lower profile design and straightforward surgical approach will expand our access to less complicated primary cases and believe it will be an important catalyst in the ongoing market conversion from fusion procedures to total ankle replacement.”

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

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