Dental implants maker ZimVie's Q2 sales beat estimates

Overview

• ZimVie Q2 sales of $116.7 mln beat analyst expectations, per LSEG data

• Adjusted EPS of $0.26 beats analyst estimates, per LSEG data

• Co had previously agreed to be acquired by ARCHIMED for $19.00 per share in cash

Outlook

• ZimVie withdraws fiscal 2025 guidance due to pending acquisition

• Transaction with ARCHIMED expected to close by year-end 2025

Result Drivers

• RESTRUCTURING ACTIVITIES - Co attributes improved net loss margin to restructuring activities aimed at optimizing organization

• ACQUISITION EXPENSES - Transaction costs related to strategic portfolio evaluation impacted financial results

• CURRENCY IMPACT - Constant currency sales decline of 2.1% due to foreign exchange rates

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

• Wall Street's median 12-month price target for ZimVie Inc is $16.00, about 17.6% below its July 29 closing price of $18.81

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX5xN9Pp