We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zimmer Biomet (ZBH) Gains From Procedure Recovery, New Launches
Read MoreHide Full Article
Zimmer Biomet's (ZBH - Free Report) focus on emerging markets and stabilizing market trends bolster our confidence in this stock. The stock carries a Zacks Rank #1 (Strong Buy).
In the past year, Zimmer Biomet has outperformed its industry. The stock has gained 40.5% against a 20.3% decline of the industry.
Zimmer Biomet ended the first quarter of 2023 with better-than-expected earnings and revenues. Each of the company’s geographic segments and product divisions recorded strong year-over-year sales growth at CER. Management noted continued procedure recovery, solid execution and increasing traction around innovations in the reported quarter. In the quarter, the company had a selling day tailwind of about 100 basis points.
In terms of business category, global knees grew 18.2% on strong uptake across the full Persona product portfolio and sales traction in all regions. Currently, Persona, Primary, Partial, Revision and OsseoTi cementless options are all performing strongly. Global hips grew 12.9%, driven by continued traction across the Avenir and G7 product lines, along with the ongoing uptake of Rosa hip.
The company is also encouraged about the early positive impact of the Hip Insight launch. The S.E.T. category grew 6.4%, driven by continued strong performance across its key focus areas of CMFT, sports medicine and upper extremities, all of which grew in the teens.
Overall, the business experienced a faster-than-expected recovery of elective procedures, driven by the easing of staffing-related headwinds, normalization of cancellation rates, and some backlog recapture. Further, Zimmer Biomet benefited from lighter comps, strong commercial and supply chain execution and new product uptake.
Even amid the challenging macroeconomic conditions, expansion in the company’s adjusted gross and operating margins is encouraging. The raised 2023 guidance is an indication of the strong growth momentum to continue through the year.
On the flip side, Zimmer Biomet continued to face significant challenges in terms of unfavorable foreign exchange, supply, inflation and staffing shortage. Reimbursement headwinds in the United States restorative therapies are another downside. In APAC, the company saw some pressure in China, as anticipated.
Meanwhile, mounting expenses are putting pressure on margins. Selling, general and administrative expenses were up 4.6%, while research and development expenses rose 13.9%.
We also remain concerned about the pricing scenario as it will be affected by cost containment efforts of governmental healthcare, local hospitals and health systems. Zimmer Biomet witnessed price erosion of 140 basis points in Q1.
Penumbra’s stock has risen 175.7% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has remained constant at $1.56 for 2023 and $2.56 for 2024 in the past 30 days.
PEN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.
The Zacks Consensus Estimate for Lantheus’ 2023 EPS has remained constant at $5.60 in the past 30 days. Shares of the company have improved 54.4% in the past year against the industry’s 19.8% decline.
LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.
Estimates for Haemonetics’ EPS have increased from $3.29 to $3.55 for 2023 in the past 30 days. Shares of the company have increased 38% in the past year against the industry’s 19.8% decline.
HAE’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, Haemonetics delivered an earnings surprise of 13.24%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Zimmer Biomet (ZBH) Gains From Procedure Recovery, New Launches
Zimmer Biomet's (ZBH - Free Report) focus on emerging markets and stabilizing market trends bolster our confidence in this stock. The stock carries a Zacks Rank #1 (Strong Buy).
In the past year, Zimmer Biomet has outperformed its industry. The stock has gained 40.5% against a 20.3% decline of the industry.
Zimmer Biomet ended the first quarter of 2023 with better-than-expected earnings and revenues. Each of the company’s geographic segments and product divisions recorded strong year-over-year sales growth at CER. Management noted continued procedure recovery, solid execution and increasing traction around innovations in the reported quarter. In the quarter, the company had a selling day tailwind of about 100 basis points.
In terms of business category, global knees grew 18.2% on strong uptake across the full Persona product portfolio and sales traction in all regions. Currently, Persona, Primary, Partial, Revision and OsseoTi cementless options are all performing strongly. Global hips grew 12.9%, driven by continued traction across the Avenir and G7 product lines, along with the ongoing uptake of Rosa hip.
The company is also encouraged about the early positive impact of the Hip Insight launch. The S.E.T. category grew 6.4%, driven by continued strong performance across its key focus areas of CMFT, sports medicine and upper extremities, all of which grew in the teens.
Zimmer Biomet Holdings, Inc. Price
Zimmer Biomet Holdings, Inc. price | Zimmer Biomet Holdings, Inc. Quote
Overall, the business experienced a faster-than-expected recovery of elective procedures, driven by the easing of staffing-related headwinds, normalization of cancellation rates, and some backlog recapture. Further, Zimmer Biomet benefited from lighter comps, strong commercial and supply chain execution and new product uptake.
Even amid the challenging macroeconomic conditions, expansion in the company’s adjusted gross and operating margins is encouraging. The raised 2023 guidance is an indication of the strong growth momentum to continue through the year.
On the flip side, Zimmer Biomet continued to face significant challenges in terms of unfavorable foreign exchange, supply, inflation and staffing shortage. Reimbursement headwinds in the United States restorative therapies are another downside. In APAC, the company saw some pressure in China, as anticipated.
Meanwhile, mounting expenses are putting pressure on margins. Selling, general and administrative expenses were up 4.6%, while research and development expenses rose 13.9%.
We also remain concerned about the pricing scenario as it will be affected by cost containment efforts of governmental healthcare, local hospitals and health systems. Zimmer Biomet witnessed price erosion of 140 basis points in Q1.
Other Key Picks
Some other top-ranked stocks in the overall healthcare sector are Penumbra (PEN - Free Report) , Lantheus (LNTH - Free Report) and Haemonetics (HAE - Free Report) . While Penumbra and Lantheus each sport a Zacks Rank #1 (Strong Buy), Haemonetics carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra’s stock has risen 175.7% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has remained constant at $1.56 for 2023 and $2.56 for 2024 in the past 30 days.
PEN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.
The Zacks Consensus Estimate for Lantheus’ 2023 EPS has remained constant at $5.60 in the past 30 days. Shares of the company have improved 54.4% in the past year against the industry’s 19.8% decline.
LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.
Estimates for Haemonetics’ EPS have increased from $3.29 to $3.55 for 2023 in the past 30 days. Shares of the company have increased 38% in the past year against the industry’s 19.8% decline.
HAE’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, Haemonetics delivered an earnings surprise of 13.24%.