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Wright Medical's Forecast Disappoints BY DAVID KRESSEL, FEBRUARY 10, 2006

Last night Wright (WMGI) reported slightly better than expected results, but lowered 2006 guidance dramatically. Revenue guidance dropped modestly, but EPS guidance was knocked down substantially because Wright will increase investments in R&D and sales and marketing.

2006 Guidance, and Growth over 2005 Results

2005A OLD 2006E Growth NEW 2006E Growth
Revenue $ 319 $ 346 8% $ 336 5%
EPS $ 0.71 $ 0.83 17% $ 0.58 -19%


We can also guess that given the recent results and management turnover at WMGI that the guidance was reset to give the team the chance to rebuild credibility with Wall Street. But WMGI is taking its lumps along the way, with the stock off 8% today.

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