Back to top

Image: Bigstock

Zimmer Biomet Holdings, Inc.

Read MoreHide Full Article

Zimmer Biomet ended the second quarter on a mixed note. While earnings topped the Zacks Consensus Estimate, revenues remained in line with the same. We are disappointed by the company's declining sales performance within several of its core segments. Moreover, the market seems to be apprehensive about the departure of Zimmer’s decade old CEO David C. Dvorak. Zimmer Biomet has been lagging the broader industry with respect to share price movement over the last three months. The trimmed 2017 guidance adds to our concerns indicating little chances of recovery ahead. Nevertheless, improved gross and operating margin performance was encouraging. We look forward to the expected synergy from the LDR Holding acquisition, which should broaden and complement the company's musculoskeletal offering. We are also impressed by the strong strategic and financial goals which the combined entity expects to reach, now that the deal has been closed.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Zimmer Biomet Holdings, Inc. (ZBH) - free report >>

Published in