Zimmer Biomet Earnings: Despite US Knee Softness, Mid-Single-Digit Top-Line Growth Remains Solid

Wide-moat Zimmer Biomet delivered decent second-quarter performance that generally met the firm’s goal of reaching mid-single-digit top-line growth that can be maintained. With few surprises, we’re leaving our fair value estimate unchanged for now. We’ve been largely pleased that the firm has been able to keep revenue growth around 5% in constant currency for the first half of the year, which puts it on track to meet our full-year estimates. Though there has been some pressure on gross margin, year to date it remains within arm’s length from our tempered projections.