“an easy comp led us to believe that 3Q results were beatable. While top-line fell in-line with the Street and EPS was 3 cents higher (which would have satisfied investors in our view), sentiment was hampered by commentary related to FY19 (specifically ongoing margin pressures and lost sales from ZBH’s distribution agreement with BONESUPPORT (BONEX-OM, Not Rated)). Underlying rev. growth of 2.0% Y/Y improved Y/Y (helped by 3Q tenders, ~40bps by our est.) and while GMs were soft (as expected in 3Q), mgmt. commentary indicates ongoing margin pressure into FY19 along with increasing Fx headwinds. Collectively headwinds will lower EPS by $0.15 in FY19, offset by a lower interest expense and tax rate.”,” BTIG Research’s analyst wrote.
A number of other brokerages have also recently issued reports on ZBH. Zacks Investment Research cut Zimmer Biomet from a hold rating to a sell rating in a report on Wednesday, October 17th. Raymond James boosted their target price on Zimmer Biomet from $135.00 to $145.00 and gave the stock an outperform rating in a report on Monday, July 30th. Robert W. Baird boosted their target price on Zimmer Biomet from $121.00 to $132.00 and gave the stock a neutral rating in a report on Monday, July 30th. Citigroup boosted their target price on Zimmer Biomet from $117.00 to $128.00 and gave the stock a neutral rating in a report on Tuesday, July 31st. Finally, Jefferies Financial Group boosted their target price on Zimmer Biomet to $145.00 and gave the stock a buy rating in a report on Monday, July 30th. Three research analysts have rated the stock with a sell rating, nine have given a hold rating and fifteen have assigned a buy rating to the stock. The stock has an average rating of Hold and a consensus target price of $135.19.
Zimmer Biomet (NYSE:ZBH) last issued its earnings results on Friday, October 26th. The medical equipment provider reported $1.63 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.60 by $0.03. Zimmer Biomet had a return on equity of 12.88% and a net margin of 22.42%. The business had revenue of $1.84 billion during the quarter, compared to analysts’ expectations of $1.84 billion. During the same quarter in the previous year, the business earned $1.72 EPS. The company’s revenue for the quarter was up 1.3% on a year-over-year basis. As a group, sell-side analysts forecast that Zimmer Biomet will post 7.66 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 31st. Investors of record on Friday, September 28th will be given a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a yield of 0.82%. The ex-dividend date is Thursday, September 27th. Zimmer Biomet’s dividend payout ratio (DPR) is presently 11.96%.
In other Zimmer Biomet news, VP Chad F. Phipps sold 30,100 shares of the company’s stock in a transaction that occurred on Friday, September 21st. The stock was sold at an average price of $132.37, for a total value of $3,984,337.00. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Bryan C. Hanson bought 410 shares of the business’s stock in a transaction on Friday, August 31st. The stock was acquired at an average cost of $123.03 per share, for a total transaction of $50,442.30. Following the completion of the transaction, the chief executive officer now owns 25,487 shares in the company, valued at $3,135,665.61. The disclosure for this purchase can be found here. Insiders own 0.71% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in ZBH. Migdal Insurance & Financial Holdings Ltd. raised its position in shares of Zimmer Biomet by 5,200.0% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,007 shares of the medical equipment provider’s stock valued at $112,000 after purchasing an additional 988 shares in the last quarter. Regent Investment Management LLC acquired a new position in shares of Zimmer Biomet in the 2nd quarter valued at approximately $201,000. Azimuth Capital Management LLC acquired a new position in shares of Zimmer Biomet in the 2nd quarter valued at approximately $201,000. Aries Wealth Management acquired a new position in shares of Zimmer Biomet in the 2nd quarter valued at approximately $202,000. Finally, HighPoint Advisor Group LLC acquired a new position in shares of Zimmer Biomet in the 3rd quarter valued at approximately $202,000. 86.58% of the stock is currently owned by institutional investors.
About Zimmer Biomet
Zimmer Biomet Holdings, Inc, together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through four segments: Spine, less Asia Pacific; Office Based Technologies; Craniomaxillofacial and Thoracic; and Dental.
Further Reading: Liquidity
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