“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.”,” the firm’s analyst wrote.
Several other equities analysts 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 Monday, July 2nd. Piper Jaffray Companies boosted their price objective on Zimmer Biomet from $110.00 to $120.00 and gave the company a neutral rating in a report on Monday, July 30th. Raymond James boosted their price objective on Zimmer Biomet from $135.00 to $145.00 and gave the company an outperform rating in a report on Monday, July 30th. Oppenheimer reissued a buy rating and issued a $138.00 price objective (up previously from $130.00) on shares of Zimmer Biomet in a report on Friday, July 27th. Finally, Canaccord Genuity boosted their price objective on Zimmer Biomet from $122.00 to $125.00 and gave the company a hold 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 issued a buy rating to the company. The company presently has a consensus rating of Hold and a consensus price target of $133.86.
Zimmer Biomet (NYSE:ZBH) last issued its quarterly earnings data on Friday, October 26th. The medical equipment provider reported $1.63 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.60 by $0.03. The business had revenue of $1.84 billion during the quarter, compared to analysts’ expectations of $1.84 billion. Zimmer Biomet had a return on equity of 12.88% and a net margin of 22.42%. The company’s revenue for the quarter was up 1.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.72 EPS. As a group, equities research analysts expect that Zimmer Biomet will post 7.65 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 31st. Investors of record on Friday, September 28th were paid a $0.24 dividend. The ex-dividend date of this dividend was Thursday, September 27th. This represents a $0.96 annualized dividend and a dividend yield of 0.85%. Zimmer Biomet’s dividend payout ratio is presently 11.96%.
In other news, CEO Bryan C. Hanson acquired 410 shares of the business’s stock in a transaction on Friday, August 31st. The stock was bought at an average cost of $123.03 per share, for a total transaction of $50,442.30. Following the purchase, the chief executive officer now owns 25,487 shares in the company, valued at $3,135,665.61. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Chad F. Phipps sold 30,100 shares of the business’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 disclosure for this sale can be found here. 0.71% of the stock is owned by insiders.
A number of large investors have recently bought and sold shares of the business. MainStreet Investment Advisors LLC increased its stake in Zimmer Biomet by 8.9% during the 2nd quarter. MainStreet Investment Advisors LLC now owns 4,881 shares of the medical equipment provider’s stock worth $544,000 after buying an additional 399 shares in the last quarter. Robeco Institutional Asset Management B.V. boosted its holdings in shares of Zimmer Biomet by 8.1% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 5,596 shares of the medical equipment provider’s stock worth $736,000 after purchasing an additional 418 shares during the last quarter. Boltwood Capital Management boosted its holdings in shares of Zimmer Biomet by 5.7% during the 3rd quarter. Boltwood Capital Management now owns 7,788 shares of the medical equipment provider’s stock worth $1,023,000 after purchasing an additional 420 shares during the last quarter. Bradley Foster & Sargent Inc. CT boosted its holdings in shares of Zimmer Biomet by 6.7% during the 2nd quarter. Bradley Foster & Sargent Inc. CT now owns 6,773 shares of the medical equipment provider’s stock worth $755,000 after purchasing an additional 423 shares during the last quarter. Finally, TD Asset Management Inc. boosted its holdings in shares of Zimmer Biomet by 0.7% during the 2nd quarter. TD Asset Management Inc. now owns 61,859 shares of the medical equipment provider’s stock worth $6,894,000 after purchasing an additional 425 shares during the last quarter. Institutional investors own 86.58% of the company’s stock.
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.
Featured Story: Asset Allocation and Your Retirement
Receive News & Ratings for Zimmer Biomet Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zimmer Biomet and related companies with MarketBeat.com's FREE daily email newsletter.