Duncan-Williams Reviews 2Q on Wright Medical Group

Duncan-Williams has published a research report on Wright Medical Group (NASDAQ: WMGI) commenting on the 2Q11 release of earnings results.

In the report, Duncan-Williams wrote, "WMGI reported Q2:11 revenue and adjusted EPS of $132.5 million and $0.23, below our revenue estimate of $134.9 million and above our adjusted EPS estimate of $0.22. This represents 4% revenue growth and 10% EPS growth compared to the same period last year.WMGI reported Q2:11 gross margins of 68.9%, 70 basis points below our estimate of 69.6%. This represents a 10 basis point decline compared to Q2:10 and a 270 basis point decline compared to Q1:11. Strong international sales as well as weak U.S. Hip and Biologics Sales drove down gross margins in the quarter."

Duncan-Williams rated Wright Medical Group a BUY with a price target of $18.50. Wright Medical Group closed Thursday at $27.75.