Wright Medical Coming Through With Better Performance

Wright Medical (WMGI) hasn’t delivered the most consistent track record that an investor could hope for, but once again there seems to be improving momentum in the business. Not only did this extremity-focused orthopedic company deliver a decent beat relative to third quarter expectations, but management raised guidance and it looks as though the company’s efforts to improve its sales execution in lower extremities are paying off.

Wright Medical shares have been chopping upwards since the spring of this year, and it’s a little harder to make a valuation call now. There is room for the lower extremity business to outperform on better sales execution, along with ongoing strong performance in upper extremities, and I believe the injectable form of Augment could still exceed expectations, as could the recently-completed Cartiva acquisition. Likewise, it’s at least conceivable that M&A speculation could fire up again. On the flip side, steady execution has proven elusive for the company and rivals like Stryker (SYK) aren’t going to let up.

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Wright Medical Coming Through With Better Performance