CHICAGO, May 11, 2011 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every daythe Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Wright Medical Group (Nasdaq: WMGI), Kinetic Concepts (NYSE: KCI), Zimmer Holdings
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday's Analyst Blog:
Wright Beats, Swings to Black
Orthopedic devices maker, Wright Medical Group (Nasdaq: WMGI) reported first-quarter fiscal 2011 (excluding one-time items other than stock-based compensation expense) earnings per share of 19 cents, narrowly beating the Zacks Consensus Estimate of 18 cents while exceeding the year-ago earnings of 16 cents.
The company swung to profit in the quarter owing to higher sales and lower costs. It has posted a net income of $3.6 million (or 9 cents per share) in the reported quarter versus a net loss of $0.5 million (or 1 cent per share) a year-ago. Net loss for the first quarter of 2010 included the after-tax effect of about $8.1 million of expenses related to U.S. government inquiries.
Net sales for the quarter were $135.4 million, up 3% year over year in reported terms (2% on a constant currency basis), beating the Zacks Consensus Estimate of $134 million.
Revenues from the domestic market totaled $77.9 million (57.5% of total sales), up 0.3% year over year. Overseas sales increased 7% in reported and 4% in constant currency, respectively, to $57.4 million (42.5% of revenue).
Wright Medical reports revenues in four key segments, namely Hip, Knee, Extremity and Biologics, which constituted 34%, 24%, 25% and 14%, respectively, of net sales for the quarter.
Hip product revenues declined 3% year over year in constant currency while Knees sales remained flat in the quarter. As in the past, Extremity did well and posted a sharp increase of 13%. Biologics sales dipped 3% in constant currency.
Wright Medical had gross margin of 71.4% in the quarter, up from 69.4% in the year-ago quarter. Operating margin was 8.8%, substantially higher than 2.8% in the year-ago quarter.
Cash, cash equivalents and marketable securities totaled $169.7 million, down 9.2% year over year. Long-term obligations stood at $173.3 million, as of March 31, 2011, down 14.1% year over year.
In March 2011, Wright Medical announced the commercial launch of the PRO-TOE VO Hammertoe Fixation System. This system, designed with assistance from extremity specialists, offers a relatively easy mechanism for surgically repairing the lesser toes after correction of a hammer toe deformity.
Wright Medical reiterated its sales forecast for fiscal 2011 in a band of $517 million to $535 million, flat to up 3% year over year. Excluding the negative impact (of 1% to 2%) from its agreement with Kinetic Concepts (NYSE: KCI), revenues are expected to grow in a range of 1% to 5%. The company now expects adjusted earnings per share (including stock based compensation) in a band of 70 to 78 cents (earlier 88 to 95 cents), flat to up 11% year over year.
Our views are moderated by intense competition from larger players and pricing pressure. Wright Medical competes with much larger players such as Zimmer Holdings (NYSE: ZMH), Stryker (NYSE: SYK) and Smith & Nephew (NYSE: SNN). We are currently Neutral on the stock, backed by a short-term Zacks #3 Rank (Hold).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media ContactZacks Investment Research800-767-3771 ext. [email protected] http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
Subscribe to our Free Newsletters!
Sea food allergy is the adverse response of the body''s immune system to the proteins present in ...