Analysts made a financial statement on Wright Medical Group NV’s third quarter report (NASDAQ: WMGI)
Wright Medical Group NV (NASDAQ: WMGI) just released its latest quarterly results and things are looking upbeat. Both earnings and losses per share were better than expected, with earnings of US $ 223 million estimated at 9.7%. Statutory losses were lower than analysts’ expectations, reaching US $ 0.13 per share. Analysts usually update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or if there are new concerns to consider. We thought readers would find it interesting to see analysts’ latest (statutory) post-earnings forecasts for next year. NasdaqGS: WMGI Earnings and Revenue Growth November 4, 2020
Based on the latest results, the current consensus of the six analysts at Wright Medical Group is forecasting revenue of US $ 1.05 billion in 2021, which would reflect a significant 29% increase in sales over the past 12 years. month. Profits expected to improve, Wright Medical Group expects to report statutory profit of $ 0.20 per share. Yet before the latest results, analysts were forecasting revenue of US $ 1.05 billion and earnings per share (EPS) of US $ 0.20 in 2021. Consensus analysts do not appear to have seen in these results anything that would have changed their point of view. on the company, given that there have been no major changes in their estimates.
There has been no change in revenue or profit estimates or in the price target of US $ 30.67, suggesting that the company has lived up to expectations in its recent result. The consensus price target is only an average of individual analysts’ targets, so it might be helpful to see the breadth of the range of underlying estimates. There are a few variations of perceptions on Wright Medical Group, with the most bullish analyst valuing it at US $ 31.00 and the most bearish at US $ 30.00 per share. The narrowness of the estimates could suggest that the company’s future is relatively easy to gauge, or that analysts have a solid view of its prospects.
One way to get more context on these forecasts is to look at how they stack up against both past performance and the performance of other companies in the same industry. It is clear from the latest estimates that the growth rate of Wright Medical Group is expected to accelerate significantly, with a revenue growth forecast of 29% significantly faster than its historic growth of 13% per year over the past five years. years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to increase their revenues by 10% per year. It seems obvious that while the outlook for growth is brighter than in the recent past, analysts also expect Wright Medical Group to grow faster than the industry as a whole.
The bottom line
The most obvious conclusion is that there has been no major change in the outlook for the company lately, with analysts keeping their earnings forecasts stable, in line with previous estimates. Fortunately, there were no major changes to the revenue forecast, with the business still expected to grow faster than the industry as a whole. The consensus price target remained at US $ 30.67, with the latest estimates not being sufficient to impact their price targets.
With this in mind, we still believe that the long-term trajectory of the company is much more important for investors to consider. We have a forecast for Wright Medical Group through 2023, and you can see them for free on our platform here.
Remember that there can still be risks. For example, we have identified 1 warning sign for Wright Medical Group that you need to be aware of.
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