Latest news with #ZimmerBiomet
Yahoo
a day ago
- Business
- Yahoo
Zimmer (ZBH) Builds Robotics Growth Pipeline, but BofA Sees Limited Near-Term Upside
Zimmer Biomet Holdings Inc. (NYSE:ZBH) is one of the best defensive stocks to invest in according to analysts. With a decline of around 14%, Zimmer's YTD share price performance has been weak. Its management is focussing on reinvigorating growth, and in a bid to expand its robotics platform and its portfolio of navigation and enabling technologies, the company had announced the acquisition of Monogram Technologies Inc. (NASDAQ:MGRM) on July 14 for an enterprise value of $168 million. A surgeon in a modern operating theatre performing a transplant surgery with medical technology. Monogram is an orthopaedic robotics company, and Ivan Tornos, Chairman and CEO of Zimmer Biomet, expects the deal to boost his company's offerings with semi- and fully autonomous robotic technologies. On the prospects of the integration, he stated: 'Monogram's technology is a major leap forward, demonstrating our commitment to becoming the boldest and broadest innovator in surgical robotics and navigation. With Monogram's proprietary technology, Zimmer Biomet has the potential to become the first company to deliver fully autonomous capabilities and redefine both the standard of care and the future of orthopaedic surgery.' Analyst opinions over the deal have been mixed. While analysts from RBC Capital and BTIG reaffirmed their positive view, the agreement has not changed the opinion of BofA analyst Travis Steed, who reiterated a Hold rating and a $110 price target following the deal announcement. He noted that while the acquisition strengthens ZBH's position in the semi-autonomous robotics market, the financial benefits will be modest in the near term. As per the company management, the transaction will be funded through cash and available debt and is expected to be EPS neutral through 2027 and accretive thereafter. However, Steed believes the company's already strong margins limit further EPS upside, and while the move broadens ZBH's competitive edge, material revenue contributions are not expected until 2027. Zimmer Biomet Holdings Inc. (NYSE:ZBH) is a global medical technology company that designs, develops, manufactures, and markets orthopaedic products, including implants, digital and robotic solutions. While we acknowledge the potential of ZBH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Most Oversold S&P 500 Stocks So Far in 2025 and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
Zimmer Biomet raises 2025 outlook amid strong portfolio growth
Zimmer Biomet has lifted its 2025 profit outlook to between 6.7% and 7.7%, up from 5.7% to 8.2%, driven by strong growth in its sports medicine, extremities, trauma, craniomaxillofacial and thoracic (S.E.T) business and reduced China-related tariff impacts. The company's profits exceeded $2bn in Q2 2025, denoting a 7% rise from around $1.9bn in Q2 2024, with adjusted profits for 2025 now expected to fall between $8.10 and $8.30 per share, up from $7.90 to $8.10 previously. Zimmer's shares on the New York Stock Exchange were up 8.2% in pre-trading on 8 August to $84.26 per share – up from a close of $77.86 the previous day – following the results' announcement on 7 August. Sales in Zimmer's hips product category climbed by 5.8% in Q2 2025 to $536.1m, while knees rose by 3.1% to $826m in the quarter. However, the biggest growth in Q2 2025 was seen in Zimmer's S.E.T product category, rising by 17.3% to $550.3m. According to Zimmer, with the $1.2bn acquisition of foot and ankle trauma specialist Paragon 28 in April, S.E.T is now its second largest business. Zimmer also acquired orthopaedic robotics company Monogram Technologies for $177m in July. The company said that each acquisition aligns with its continued ambition to progress into higher-growth segments through 'disciplined M&A'. Revised headwind on China-related tariffs Zimmer previously anticipated a $60m-$80m drag on its 2025 operating profits due to the Trump administration's imposition of tariffs on goods imported from China. However, following what the orthopaedics giant called 'successful mitigation' efforts, including supply chain diversification and a reduction in China-based manufacturing activities, it now expects headwinds of $40m. During a company post-earnings conference call, Zimmer CFO Suketu Upadhyay told investors: 'Our tariff assumption is better than we originally expected as we've had more time to work through our mitigation strategies, and we're also seeing lower overall tariff rates than what were originally announced on our first quarter call.' Boston Scientific also revised its anticipated impact of tariffs in Q2 2025. Last month, Boston CFO John Monson told investors: 'Based on the current schedule of expected tariffs, we now anticipate a full-year headwind of about $100m, down from a $200m estimate.' Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData's Strategic Intelligence . "Zimmer Biomet raises 2025 outlook amid strong portfolio growth" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Solventum raises annual profit forecast on strength in surgical equipment
(Reuters) -Medical device maker Solventum raised full-year adjusted profit forecast on Thursday, driven by strong sales of its wound care and surgical sterilization products alongside lower expenses. Medical device makers have benefited from a surge in demand as more people, particularly older Americans, seek health care services and surgical procedures. Minnesota-based Solventum is one of the largest providers of sterilization devices, wound dressings, medical tape and other hospital consumables used by healthcare facilities. More than half of its revenue comes from its MedSurg business, which provides wound dressings and surgical equipment. Sales in the segment rose 4.8% to $1.22 billion during the quarter. Earlier in the day, Solventum's peer Zimmer Biomet Holdings also raised its annual profit forecast as it anticipates lower-than-expected tariff impact. Last quarter, Solventum estimated tariff headwinds of $80 million to $100 million for 2025, translating to an earnings per share impact of 35 cents to 45 cents. However, analysts now note that Solventum's tariff risk has eased following the recent de-escalation of U.S.-China trade tensions. The company now expects its 2025 adjusted profit per share to be in the range of $5.80 to $5.95, compared with previously projected adjusted profit of $5.45 to $5.65. On an adjusted basis, the company earned second-quarter profit per share of $1.69, compared with analysts' average estimates of $1.44, according to data compiled by LSEG.
Reuters
4 days ago
- Business
- Reuters
Solventum raises annual profit forecast on strength in surgical equipment
Aug 7 (Reuters) - Medical device maker Solventum (SOLV.N), opens new tab raised full-year adjusted profit forecast on Thursday, driven by strong sales of its wound care and surgical sterilization products alongside lower expenses. Medical device makers have benefited from a surge in demand as more people, particularly older Americans, seek health care services and surgical procedures. Minnesota-based Solventum is one of the largest providers of sterilization devices, wound dressings, medical tape and other hospital consumables used by healthcare facilities. More than half of its revenue comes from its MedSurg business, which provides wound dressings and surgical equipment. Sales in the segment rose 4.8% to $1.22 billion during the quarter. Earlier in the day, Solventum's peer Zimmer Biomet Holdings (ZBH.N), opens new tab also raised its annual profit forecast as it anticipates lower-than-expected tariff impact. Last quarter, Solventum estimated tariff headwinds of $80 million to $100 million for 2025, translating to an earnings per share impact of 35 cents to 45 cents. However, analysts now note that Solventum's tariff risk has eased following the recent de-escalation of U.S.-China trade tensions. The company now expects its 2025 adjusted profit per share to be in the range of $5.80 to $5.95, compared with previously projected adjusted profit of $5.45 to $5.65. On an adjusted basis, the company earned second-quarter profit per share of $1.69, compared with analysts' average estimates of $1.44, according to data compiled by LSEG.
Reuters
4 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.
