Analyst Note| Debbie S. Wang |
Zimmer Biomet delivered third-quarter top- and bottom-line results that offered significant improvement over the pandemic-driven nadir in the second quarter and remains on track to meet our full-year projections, leading us to hold steady on our fair value estimate. We continue to hold somewhat tempered expectations for the fourth quarter, especially considering how COVID-19 has seen a resurgence in Europe and the U.S. This dynamic is consistent with management’s comments about the stronger recovery seen in July and August, while performance in September seemed to slow again. Nonetheless, we remain confident in Zimmer Biomet’s wide economic moat and see signs that the firm continues to make operational improvements.