Analyst’s Report Recap: Wright Medical Group Inc (NASDAQ:WMGI)

The shares of Wright Medical Group Inc (NASDAQ:WMGI) currently has mean rating of 1.72 while 9 analysts have recommended the shares as “BUY”, 5 recommended as “OUTPERFORM” and 4 recommended as “HOLD”. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for sell.

The company’s mean estimate for sales for the current quarter ending Jun-16 is 173.00 million by 19 analysts. The means estimate of sales for the year ending Dec-16 is 713.74 million by 19 analysts.

The mean price target for the shares of Wright Medical Group Inc (NASDAQ:WMGI) is at 25.56 while the highest price target suggested by the analysts is 33.00 and low price target is 21.00. The mean price target is calculated keeping in view the consensus of 16 brokerage firms.

The average estimate of EPS for the current fiscal quarter for Wright Medical Group Inc (NASDAQ:WMGI) stands at -0.22 while the EPS for the current year is fixed at -0.61 by 17 analysts.

The next one year’s EPS estimate is set at -0.26 by 17 analysts while a year ago the analysts suggested the company’s EPS at -0.61. The analysts also projected the company’s long-term growth at 15.00% for the upcoming five years.

In its latest quarter ended on 31^st March 2016, Wright Medical Group Inc (NASDAQ:WMGI) reported earnings of -$0.06. The posted earnings topped the analyst’s consensus by $0.19 with the surprise factor of 76.00%. In the matter of earnings surprises, the term “Cockroach Effect” is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

On May 23, 2016 Wright Medical Group Inc (NASDAQ:WMGI) announced that TMG Holdings Coöperatief U.A., an affiliate of Warburg Pincus LLC (the “Selling Shareholder”), intends to offer for sale 6,221,809 of its ordinary shares pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission (“SEC”).  The Selling Shareholder will receive all of the net proceeds from this offering.  No shares are being sold by the Company.

BofA Merrill Lynch is acting as underwriter for the offering.

An automatic shelf registration statement (including a prospectus) relating to the offering of ordinary shares was filed with the SEC on November 17, 2015 and became effective upon filing.  Before you invest, you should read the prospectus included in that registration statement and the documents incorporated by reference in that registration statement, as well as the prospectus supplement related to this offering.  You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov.  When available, copies of the prospectus supplement and accompanying prospectus related to the offering may also be obtained from BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC  28255-0001, Attn: Prospectus Department, or by E-mail at dg.prospectus_requests@baml.com.

The offering of these securities will be made only by means of a prospectus supplement and the accompanying prospectus.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.  Any offer to buy the securities may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date.