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How Did Zimmer Biomet’s Products Perform in the Second Quarter?

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Knees segment revenue trends

In the second quarter of 2018, Zimmer Biomet’s (ZBH) Knees segment generated revenues $703.0 million, reflecting ~3.4% year-over-year growth. In Q2 2018, in the Americas, EMEA (Europe, Middle East, and Africa), and Asia-Pacific regions, Zimmer Biomet’s Knees segment generated revenues of $408.0 million, $171.0 million, and $124.0 million, respectively, reflecting ~0.7%, ~7.0%, and ~8.1% YoY growth. In the first half of 2018, Zimmer Biomet’s Knees segment generated revenues of $1.4 billion, reflecting ~2.6% YoY growth.

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Hips segment revenue trends

In the second quarter of 2018, the Hips segment generated revenues of $487.0 million, reflecting ~4.0% YoY growth. In Q2 2018, in the Americas, EMEA, and Asia-Pacific, the Hip segment generated revenues of $250.0 million, $134.0 million, and $103.0 million, respectively, reflecting ~2.7%, ~2.2%, and ~9.9% YoY growth. In the first half of 2018, Zimmer Biomet’s Hips segment generated revenues of $979.0 million, reflecting ~3.9% YoY growth.

SET, Dental, and Spine segments

In the second quarter of 2018, Zimmer Biomet’s SET (surgical, sports medicine, foot and ankle, extremities and trauma), dental, and spine & CMF (craniomaxillofacial) segments generated revenues of $434.0 million, $107.0 million, and $198.0 million, respectively, reflecting a ~3.0% increase, a ~3.2% decline, and a 2.5% increase on a YoY basis.

In the first half of 2018, Zimmer Biomet’s SET, Dental, and Spine & CMF segments generated revenues of $876.0 million, $215.0 million, and $381.0 million, respectively, reflecting a ~3.7% increase, a ~1.7% fall, and a ~0.5% increase on a YoY basis.

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Analyst recommendations

In July 2018, 27 analysts were tracking Zimmer Biomet. Eight analysts suggested a “strong buy,” and eight analysts suggested a “buy.” Ten analysts recommended a “hold,” while one analyst suggested a “strong sell” rating. On July 30, Zimmer Biomet had a consensus 12-month target price of $135.52, which represents ~7.12% growth over the next 12 months.

Peer ratings

In July 2018, of the 16 analysts tracking Align Technology (ALGN), ~81% of them recommended “buys,” while among the 16 analysts tracking Baxter International (BAX), ~56% of them recommended “buys.”

On July 30, 2018, Align Technology and Baxter International had consensus 12-month target prices of $401.4 and $76.54, respectively, which represents ~15.15% and ~11.46% returns on investment over the next 12 months.

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