Latest news with #RobbieMarcus
Reuters
2 days ago
- Business
- Reuters
Zimmer Biomet raises annual profit forecast on lower tariff impact
Aug 7 (Reuters) - Medical device maker Zimmer Biomet Holdings (ZBH.N), opens new tab raised its annual adjusted profit forecast on Thursday as it anticipates lower-than-expected tariff impacts, sending shares up 6% in morning trading. The Warsaw, Indiana-based company now expects about $40 million in tariff headwinds for 2025, down from its previous estimate of $60 million to $80 million. "Our tariff assumption is better than we originally expected, as we've had more time to work through our mitigation strategies and are seeing lower overall tariff rates," CFO Suketu Upadhyay told analysts in post-earnings conference call. The company previously expected tariff risks in China. Medical device makers have benefited from a surge in demand as more people, particularly older Americans, seek health care services and surgical procedures. Zimmer lifted its 2025 adjusted profit per share $8.10 to $8.30, up from its prior view of $7.90 to $8.10 per share. Analysts were expecting $7.97 per share, according to data compiled by LSEG. It posted an adjusted profit of $2.07 per share during the quarter ended June 30, topping estimates of $1.98 per share. Its second-quarter revenue came in at $2.08 billion, also above expectations of $2.05 billion. "We think this performance should be enough to satisfy cautious investor expectations," said J.P. Morgan analyst Robbie Marcus. Zimmer said it expects 2025 revenue growth between 6.7% and 7.7%, from its prior 5.7% to 8.2% forecast.
Business Insider
02-08-2025
- Business
- Business Insider
J.P. Morgan Keeps Their Buy Rating on Merit Medical Systems (MMSI)
J.P. Morgan analyst Robbie Marcus maintained a Buy rating on Merit Medical Systems on July 31 and set a price target of $95.00. The company's shares closed yesterday at $84.78. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Marcus covers the Healthcare sector, focusing on stocks such as Medtronic, Edwards Lifesciences, and Baxter International. According to TipRanks, Marcus has an average return of 8.8% and a 52.81% success rate on recommended stocks. In addition to J.P. Morgan, Merit Medical Systems also received a Buy from Needham's Michael Matson in a report issued on July 31. However, yesterday, TR | OpenAI – 4o reiterated a Hold rating on Merit Medical Systems (NASDAQ: MMSI). The company has a one-year high of $111.45 and a one-year low of $81.04. Currently, Merit Medical Systems has an average volume of 657.7K. Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MMSI in relation to earlier this year. Most recently, in June 2025, Raul Jr. Parra, the CFO & Treasurer of MMSI sold 15,181.00 shares for a total of $1,423,218.75.
Reuters
30-07-2025
- Business
- Reuters
GE HealthCare raises annual profit forecast on smaller tariff impact
July 30 (Reuters) - GE HealthCare Technologies (GEHC.O), opens new tab raised annual profit forecast on Wednesday, as the medical device maker expects a smaller hit from tariffs. The company expects adjusted profit of $4.43 to $4.63 per share for 2025, compared with its previous range of $3.90 to $4.10 per share. The forecast includes a 45-cent-per-share impact from tariffs, which is lower than the 85 cents or $500 million hit it expected in April. Other medical device maker Boston Scientific (BSX.N), opens new tab and healthcare conglomerate Johnson & Johnson (JNJ.N), opens new tab, whose costs were exclusively tied to its medtech unit, also halved their expectations for tariff-related costs for the year to about $100 million and $200 million, respectively. GE HealthCare expects annual organic revenue growth of 3%, compared with its previous forecast of a 2% to 3% increase. analyst Robbie Marcus said the company's outlook was "good enough as a more in-line organic growth performance is balanced against conservative tariff assumptions that could/will likely leave upside on the table". GE HealthCare also beat Wall Street estimates for second-quarter profit and revenue, driven by growth in its all four businesses. Revenue at imaging devices, the company's largest segment, grew 2% during the period. Its other units are advanced visualization solutions, patient care solutions and pharmaceutical diagnostics. Medical device manufacturers have been benefiting from still-high demand for elective surgical procedures in the United States, especially among older adults. GE HealthCare's total revenue came in at $5.01 billion during the quarter ended June 30, compared with analysts' average estimate of $4.96 billion, according to data compiled by LSEG. On an adjusted basis, it earned $1.06 per share, compared with the estimate of 92 cents per share. The company said its adjusted core margin was down 80 basis points during the quarter, impacted by tariffs.
Reuters
17-07-2025
- Business
- Reuters
Abbott beats estimates on medical devices demand as forecast hits shares
July 17 (Reuters) - Abbott (ABT.N), opens new tab beat Wall Street estimates for second-quarter profit on Thursday, driven by strong demand for its medical devices, including continuous glucose monitors. However, its shares fell 5% premarket after the company's third-quarter earnings forecast fell short of expectations. Abbott projected a profit of between $1.28 and $1.32 per share for the current quarter, below expectation of $1.34. With Abbott shares one of the best year-to-date performers in large and mega-cap medtech, its print needed to be nearly spotless to keep shares moving higher, BTIG analyst Marie Thibault said. In April, Abbott had said it expects President Donald Trump's tariffs to begin impacting results in the third quarter, with an anticipated annual cost of "a few hundred million dollars." Investors will likely watch for any comments on tariffs from executives during the post-earnings call after larger rival Johnson & Johnson (JNJ.N), opens new tab on Wednesday halved its expectations for such costs this year to about $200 million. analyst Robbie Marcus said the company's results balance strong underlying growth trends in diabetes care and heart devices against a muted forecast update. Meanwhile, Abbott said on Thursday it planned to build a manufacturing facility in Georgia by 2028 to support its cardiovascular business, as companies seek to mitigate the tariff impact by moving manufacturing to the U.S. This follows the company's April announcements for manufacturing and research projects in Illinois and Texas, which are expected to go live by the end of the year. Sales of Abbott's continuous glucose monitoring (CGM) devices, which include the FreeStyle Libre series and Lingo, jumped 21.4% to $1.9 billion in the second quarter. CGM makers such as Abbott, Dexcom (DXCM.O), opens new tab and Medtronic (MDT.N), opens new tab are riding a surge in demand as diabetes awareness rises, insurance coverage expands, and patients embrace finger-prick-free technology. Abbott's quarterly revenue came in at $11.14 billion, beating expectations of $11.07 billion, according to data compiled by LSEG. On an adjusted basis, the company reported a profit of $1.26 per share for the second quarter, compared with analysts' average estimate of $1.25.
CNBC
14-07-2025
- Business
- CNBC
Waters to buy Becton Dickinson unit in a $17.5 billion deal amid tariff pressures
Lab equipment maker Waters Corp will buy a bioscience and diagnostics unit spun off from medtech provider Becton Dickinson in a stock-and-cash transaction valued at $17.5 billion, the companies said on Monday. Becton Dickinson, which had been underperforming in recent months and was targeted by activists, will exit a tariff-sensitive segment of diagnostics and biosciences while doubling down on core medtech, where it may have greater pricing power and a stronger domestic manufacturing base. BD had disclosed plans to separate the business — which makes products used to detect infectious diseases and cancers — in February, then rumored to be worth around $30 billion. The acquisition gives greater scale for Waters, a provider of analytical technologies serving life sciences and diagnostics markets, and the company is expected to double its total addressable market to about $40 billion, with a healthy 5% to 7% annual growth rate. The merged entity may be able to leverage BD's existing U.S.-based manufacturing and regulatory infrastructure to mitigate tariff costs. Still, investor reaction was cautious. Waters shares were down 11.5% at $312.19 and Becton shares were down 0.7% at $174.68 on Monday afternoon, reflecting doubts over the complexity and execution risks associated with the deal's structure, according to JP Morgan analysts. The deal "leaves value creation dependent on the successful integration and execution by Waters management," said JP Morgan analyst Robbie Marcus. Jefferies analysts echoed the sentiment, noting that the deal added complexity to Waters' once-clear growth strategy. The combined business will be led by Waters CEO Udit Batra, widely credited for orchestrating the $17 billion Merck KGaA acquisition of Sigma-Aldrich in 2015, an experience Jefferies analysts said lends credibility to the complex integration process ahead. Becton was underperforming both revenue growth and margins, said Jeff Jonas, portfolio manager at Gabelli Funds, which owns shares of both BD and Waters Corp. In May, BD lowered its annual profit forecast in anticipation of a potential hit from U.S. President Donald Trump's tariffs. "It (BD) can benefit from a more focused management," Jonas said. The deal announced on Monday is structured as a so-called Reverse Morris Trust, which allows a company to avoid a big tax bill by spinning off a unit that it wants to divest while simultaneously merging it with another company. Waters shareholders are expected to own approximately 61% of the combined company. Waters will assume about $4 billion in incremental debt to pay BD $4 billion in cash distribution as part of the transaction. Becton shareholders will own about 39% of the new company, which will trade under Waters' stock symbol.
