The only big surprise regarding Encore Medical's ( ENMC) earnings release Monday was the volatility in the shares. After closing at $6.01 on Friday, the stock opened at $6.04, spiked to $6.45 and plunged to $5.80 within the first 15 minutes of trading. It closed right where it opened at $6.04.The volatility was a bit unexpected because the company's earnings release didn't contain any surprises or even guidance. Investors had to wait for Monday morning's conference call, which was held at 10 a.m., to receive 2006 projections. In the fourth quarter, Encore earned 6 cents per share on revenue of $75 million. EPS was right in line, while revenue was shy of expectations by less than $700,000. The company said earnings in 2006 would be between 27 cents and 30 cents per share, below the consensus estimate of 31 cents. That figure does include one-time costs related to the Compex Technologies acquisition. Projected revenue of $415 million to $425 million, however, is expected to be significantly higher than the consensus forecast of $350 million. Encore's management provided some color regarding the Compex purchase, which closed Feb. 24. One of the big takeaways is that Encore needs to figure out what to do with Compex's U.S. consumer unit. Some of Compex's products, such as Slendertone, which firms abs and other parts of the body, are sold on The Home Shopping Network and in General Nutrition Centers and don't fit well with Encore's other business units. The segment was unprofitable for Compex in 2005. However, Davis Henley, Encore's vice president of business development, said Compex devoted a significant amount of resources toward the group in the first half of 2005 and that the business was nearing break-even level in the latter half of the year. Henley is right. In the six months ending Dec. 31, 2005, Compex's U.S. Consumer unit lost $39,000 vs. a profit for the entire company of $14 million.