Wright Medical slides on Q1 misses

Wright Medical (NSDQ:WMGI) shares are under pressure today after the extremity orthopedics company yesterday posted 1st-quarter numbers that missed expectations on Wall Street.

Losses for Memphis-based Wright were up 22.3% to -$58.7 million, or -57¢ per share, on sales growth of 4.7% to $177.2 million for the 3 months ended March 26, compared with Q1 2016. Adjusted to exclude 1-time items, losses per share -9¢, a penny ahead of the consensus on The Street, where analysts were looking for sales of $181.2 million.

“Our upper extremities business continued to have strong growth as Simpliciti drove 13% growth in U.S. shoulder. Additionally, we launched our Perform reversed glenoid in March and anticipate that this will drive accelerating revenue in the second half of the year as we deliver additional instrument sets to the U.S. field,” president & CEO Robert Palmisano said in prepared remarks. “In our U.S. lower extremities and biologics business, we saw outstanding growth of 28% in the most technologically advanced portions of our portfolio, which include Augment, Salvation and Total Ankle Replacement. Growth in the core lower extremities and biologics portfolio was significantly lower, partially due to the revenue dis-synergies in the quarter, which we anticipated. The key to improving our growth rates in this core lower extremities and biologics portfolio is our sales force expansion, which we have completed ahead of schedule. This accelerated implementation of our sales force expansion plan resulted in some short-term distraction in the 1st quarter that we expect will be offset in the 2nd half of the year.”

Wright affirmed its outlook, saying it still expects to log adjusted losses per share of -33¢ to -26¢ on sales of $755 million to $765 million.

WMGI shares were down -5.9% to $28.07 apiece today in mid-day activity.

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