The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Zimmer Biomet (NYSE:ZBH) and the rest of the surgical equipment & consumables – diversified stocks fared in Q3.
The surgical equipment and consumables industry provides tools, devices, and disposable products essential for surgeries and medical procedures. These companies therefore benefit from relatively consistent demand, driven by the ongoing need for medical interventions, recurring revenue from consumables, and long-term contracts with hospitals and healthcare providers. However, the high costs of R&D and regulatory compliance, coupled with intense competition and pricing pressures from cost-conscious customers, can constrain profitability. Over the next few years, tailwinds include aging populations, which tend to need surgical interventions at higher rates. The increasing integration of AI and robotics into surgical procedures could also create opportunities for differentiation and innovation. However, the industry faces headwinds including potential supply chain vulnerabilities, evolving regulatory requirements, and more widespread efforts to make healthcare less costly.
The 5 surgical equipment & consumables – diversified stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.7%.
In light of this news, share prices of the companies have held steady as they are up 4.3% on average since the latest earnings results.
With a history dating back to 1927 and a presence in over 100 countries worldwide, Zimmer Biomet (NYSE:ZBH) designs and manufactures orthopedic products including knee and hip replacements, surgical tools, and robotic technologies for joint reconstruction and spine surgeries.
Zimmer Biomet reported revenues of $2.00 billion, up 9.7% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ full-year EPS guidance estimates but revenue in line with analysts’ estimates.
“Our third quarter performance was anchored by 5.6% organic revenue growth in our critical U.S. business, driven by accelerated adoption of our key new products referred to as the ‘Magnificent Seven,'” said Ivan Tornos, Chairman, President and CEO of Zimmer Biomet.
Zimmer Biomet Total Revenue
Zimmer Biomet delivered the weakest performance against analyst estimates of the whole group. The stock is down 15.4% since reporting and currently trades at $87.26.
Read our full report on Zimmer Biomet here, it’s free.
With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE:STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.
STERIS reported revenues of $1.46 billion, up 9.9% year on year, outperforming analysts’ expectations by 2%. The business had a very strong quarter with a solid beat of analysts’ constant currency revenue estimates and an impressive beat of analysts’ revenue estimates.
STERIS Total Revenue
STERIS pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 6.1% since reporting. It currently trades at $257.96.
Is now the time to buy STERIS? Access our full analysis of the earnings results here, it’s free.
With a history dating back to 1897 and a presence in virtually every hospital around the globe, Becton Dickinson (NYSE:BDX) develops and manufactures medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions and professionals worldwide.
BD reported revenues of $5.89 billion, up 8.3% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a narrow beat of analysts’ EPS estimates but a slight miss of analysts’ constant currency revenue estimates.
Interestingly, the stock is up 15.7% since the results and currently trades at $204.13.
Read our full analysis of BD’s results here.
Founded in 1985, Solventum (NYSE:SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.
Solventum reported revenues of $2.10 billion, flat year on year. This print topped analysts’ expectations by 1.3%. It was a strong quarter as it also recorded an impressive beat of analysts’ organic revenue estimates and a narrow beat of analysts’ revenue estimates.
Solventum had the slowest revenue growth among its peers. The stock is up 21.3% since reporting and currently trades at $80.38.
Read our full, actionable report on Solventum here, it’s free.
With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE:CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.
CONMED reported revenues of $337.9 million, up 6.7% year on year. This result surpassed analysts’ expectations by 1%. Overall, it was a satisfactory quarter as it also produced a narrow beat of analysts’ constant currency revenue estimates.
The stock is down 6.3% since reporting and currently trades at $41.63.
Read our full, actionable report on CONMED here, it’s free.
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