While some analysts see a buying opportunity after Zimmer Biomet’s (ZBH) latest quarterly results, it is the company’s efforts to return to growth that could signal merger-and-acquisition opportunities.
The medical-device company is well on track to show a return to growth this year, say Jefferies analysts in a research note Friday. Overall organic revenue growth was about 2.5%, better than their estimate of 1.7%. The analysts also noted that the company’s guidance for the second half of the year implies continued growth.
Zimmer Biomet reported second-quarter adjusted earnings of $2.02 per share Thursday that exceeded Wall Street’s expectations. Revenue of $1.93 billion for the period also surpassed analysts’ forecasts of $1.9 billion. But the key takeaway was the success integration of Biomet as the company has re-established top-line momentum. The stock was up during the trading session Friday, at around $130.85.
“We are now poised to move forward with our plans, which include the acceleration of our commercial and innovation strategic priorities,” said CEO David Dvorak during a conference call with analysts, “These priorities are designed to further enhance and sustain our growth well into the future.”