Latest news with #CarlZeissMeditecAG
Yahoo
14-05-2025
- Business
- Yahoo
Carl Zeiss Meditec AG (CZMWF) Q2 2025 Earnings Call Highlights: Robust Revenue Growth Amidst ...
Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Carl Zeiss Meditec AG (CZMWF) reported a robust revenue growth of 10.9% in the first six months of 2025, with Q2 revenue growing by 19%. The company achieved a significant milestone with recurring revenue now making up 50% of total revenue for the first time in its history. Strong order entry was observed, with a 33.4% increase in orders, indicating a positive trend for future revenue. The company maintained a stable order backlog of 385.4 million, providing a solid foundation for future growth. The launch of the VisoMax 800 in China has been well-received, signaling strong customer excitement and potential for increased sales in the region. The EBITA margin decreased to 10.8% from last year's 12%, indicating pressure on profitability. Net income declined significantly from 84 million to 61 million, and earnings per share dropped by 26% compared to last year. The company faces challenges from US tariffs, which could impact competitiveness and pricing strategies. There is continued uncertainty in the global macroeconomic environment, particularly with US trade tariffs and currency risks. Operating cash flow decreased significantly to 9 million from 60 million last year, mainly due to weaker operating results and increased account receivables. Warning! GuruFocus has detected 6 Warning Signs with CZMWF. Q: Could you provide insights on the current state of Chinas refractive demand and expectations for the summer season? A: Dr. Marcus Weber, CEO, explained that the China refractive market showed strong performance in Q2, partly due to changes in military regulations. The market appears to have stabilized, and there is cautious optimism for continued stabilization throughout the year. The Viso Max 800 has been well-received, which is expected to positively impact future quarters. Q: What are the potential headwinds or opportunities for the remainder of the year, excluding tariffs and currency impacts? A: Jo Weber, CFO, highlighted that currency fluctuations, particularly the potential devaluation of the US dollar against the euro, pose a significant headwind. The ongoing uncertainty regarding US-EU tariff negotiations also remains a concern. Q: Can you provide an update on the sales potential from new product launches like Viso Max and Knivo in the second half of the year? A: Dr. Marcus Weber, CEO, noted positive momentum for these products, especially in the US and Japan. The company is focused on ensuring timely delivery despite potential tariff-related uncertainties. The Viso Max 800 is gaining traction in China, contributing to the company's growth plans. Q: How are you managing the impact of US tariffs, and what is the expected financial impact? A: Jo Weber, CFO, stated that the company is positioned to offset a significant portion of the tariff impact through pricing strategies. The competitive landscape, with most competitors also facing tariffs, allows for some flexibility in managing these costs. Q: What are the current trends in IOL volumes in China, and how is the rollout of VDP affecting growth? A: Jo Weber, CFO, reported a 4% growth in IOL volumes, with premium IOLs showing even higher growth. The company is optimistic about offsetting previous negative impacts through volume growth in the private sector. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-02-2025
- Business
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Carl Zeiss Meditec AG (CZMWF) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst Market ...
Release Date: February 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Carl Zeiss Meditec AG (CZMWF) reported a 3.2% increase in revenue for Q1 2025 compared to the same period last year. The company saw a significant recovery in order entry, reaching 522 million, a 34.4% increase at constant currency. The approval of the Visa Max 800 in China was achieved earlier than expected, potentially boosting future sales. Recurring revenue now accounts for 47.3% of total revenue, indicating a stable income stream. The company has implemented strict cost control measures, leading to a reduction in R&D expenses and underlying operating expenses. When adjusted for FX and acquisitions, revenue actually declined by 7.3% due to strong prior year comparisons and a weaker investment climate, particularly in China. EBITA declined by 23.5% compared to the prior year, resulting in a margin drop from 9.7% to 7.2%. The gross margin decreased to 51.4% due to an unfavorable product mix and price cuts in IOLs. Net income dropped significantly from 37 million to 160 million, with earnings per share declining by 57.1%. The company faces ongoing challenges in China, with a decline in sales due to product cycle transitions and restrictive investment climates. Warning! GuruFocus has detected 4 Warning Signs with CZMWF. Q: Can you provide an update on the Chinese New Year season, particularly regarding volume trends and pricing pressures? Also, how is the demand for the VisuMax 800 following its earlier-than-expected approval in China? A: We observed stabilization in the Chinese market, especially in refractive laser surgery, despite the dynamic environment. The VisuMax 800 has been well-received, with customers excited about its new features. We are maintaining a high pace of innovation to support market share growth, particularly with Smile Pro and other advanced procedures. (Respondent: CEO) Q: Why hasn't the guidance been clarified with more granularity as previously implied? Has visibility improved at all? A: We are confirming the guidance given earlier, and uncertainties remain high. We haven't gained much more visibility, especially regarding the spring peak in China for our refractive business. Major influences like tariff escalations are still uncertain. (Respondent: CFO) Q: Can you quantify what you mean by "moderate growth" and provide more clarity on the top-line guidance? A: We aim to grow at least as fast as the market, targeting low single-digit growth. The growth depends heavily on market composition and conditions, particularly in China, where we see stabilization and opportunities due to new innovations. (Respondent: CEO) Q: How has the volume of IOLs developed, and what are your expectations for market share and volume growth? A: We have seen a strong increase in units and volume, indicating a market share increase. Our strategy focuses on premium lenses and higher price realization in private sector clinics, which is working well. We expect volume growth to contribute positively to gross profit. (Respondent: CFO) Q: Regarding the VisuMax 800, how do you expect it to stimulate demand given the current underutilization of the installed base? A: The VisuMax 800, with its advanced features and new applications like presbyopia treatment, is expected to create significant value for customers. We anticipate strong demand for replacements and new installations, particularly in China, where the market is poised for growth. (Respondent: CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
10-02-2025
- Business
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The past three years for Carl Zeiss Meditec (ETR:AFX) investors has not been profitable
Carl Zeiss Meditec AG (ETR:AFX) shareholders should be happy to see the share price up 21% in the last month. But that is small recompense for the exasperating returns over three years. Regrettably, the share price slid 57% in that period. Some might say the recent bounce is to be expected after such a bad drop. After all, could be that the fall was overdone. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. Check out our latest analysis for Carl Zeiss Meditec To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Carl Zeiss Meditec saw its EPS decline at a compound rate of 8.2% per year, over the last three years. This reduction in EPS is slower than the 24% annual reduction in the share price. So it seems the market was too confident about the business, in the past. You can see below how EPS has changed over time (discover the exact values by clicking on the image). It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. Investors in Carl Zeiss Meditec had a tough year, with a total loss of 48% (including dividends), against a market gain of about 18%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 8% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for Carl Zeiss Meditec that you should be aware of. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
