Straumann Earnings: Foreign Exchange Headwinds Mask Strong and Resistant Underlying Performance

Narrow-moat Straumann reported fourth-quarter earnings that came in slightly higher than our expectations. Total sales of CHF 624 million marked a 5.5% growth, or 13.9% in constant currency, year over year. Continued adoption of Straumann’s premium implants, including BLT and BLX lines, helped the firm expand shares and post robust gains in China and Latin America, offsetting slight weakness in the US and strong foreign exchange headwinds. After adjusting our model and accounting for time value of money impacts, we raise our fair value estimate to CHF 100 per share from CHF 94.