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Research Tree provides access to ongoing research coverage, media content and regulatory news on CARL ZEISS MEDITEC AG - BR. We currently have 4 research reports from 1 professional analysts.
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CARL ZEISS MEDITEC AG - BR
CARL ZEISS MEDITEC AG - BR
Mid-term growth drivers remain intact
21 Jan 17
Carl Zeiss Meditec’s (CZM) Q4 FY16 revenue came in below our estimates but profitability outperformed. Revenue at CER was down 1.9% (vs AV estimate: +4.3%), primarily due to a slowdown in the ophthalmology (-8.3% vs AV estimate: +7%; accounts for c.31% of Q4 16 revenue) and microsurgery segments (-4.5% vs AV estimate: +0.5%; accounts for c.29% of Q4 16 revenue). High prior year comparables suppressed the growth in surgical ophthalmology and microsurgery (+34% and +24%, respectively) during the quarter. However, the ophthalmic systems business was up 5.7% (vs AV estimate: +5%; accounts for c.40% of Q4 16 revenue), wherein, the good performance in the refractive laser business was slightly offset by competitive pressure in the diagnostic business. Geographically, the growth momentum sequentially decelerated in the APAC region (+11.3% vs Q3 16: +25.3%; accounts for c.36% of Q4 16 revenue), primarily due to a slowdown in Japan. The dismal performance continued in the EMEA region (-6.4% vs Q3 16: -6%; accounts for c.31% of Q4 16 revenue), on the back of the challenging economic/political situation in Southern Europe and the Middle East. The Americas region was also under pressure (-9.7% vs Q3 16: -6.7%; accounts for c.33% of Q4 16 revenue) due to the intense competition in the US diagnostics market and the weak macro environment in Brazil. Total revenue decreased by 0.5% (vs AV estimate: +6.5%), reflecting a +1.4% currency effect. However, the EBIT margin strengthened to 15.1% (vs AV estimate: 13.4%), largely driven by a favourable product mix in the ‘cash cow’ microsurgery business (25.4% vs AV estimate: 21.9%). Moreover, a lower than expected tax expense further underpinned the EPS (€0.38 per share vs AV estimate: €0.28). For FY16, the total revenue (€1,088m) came in at the lower end of the company’s guidance (€1,080-1,120m). Similarly, the 14.2% EBIT margin was also within management’s expectation (13-15%). Management has proposed a dividend of €0.42 per share (vs €0.38 in FY15), which translates into a c.35% payout ratio. For FY17, management expects revenue to grow at least in par with market growth (low to mid single-digit) and the EBIT margin to be in the 13-15% range.
Value shifts from microsurgery to ophthalmology
03 Dec 16
Carl Zeiss Meditec (CZM) released Q3 FY16 results broadly in line with market consensus. All the sales growth numbers are at CER unless specified otherwise. Revenue increased by 2.9% (vs Q2 16: +6.7%), largely due to slower growth in the ophthalmic systems segment (+1.7% vs Q2 16: +12.9%; accounts for c.39% of Q3 16 revenue). Stiff competition in the diagnostic business and a high prior year comparable (Q3 15: +12.6%) lowered the growth of the segment. Revenue in the microsurgery segment also slumped by 2.0% (vs Q2 16: 3.5%; accounts for c.25% of Q3 16 revenue), on the back of a tough comparable in the previous year. However, the surgical ophthalmology revenue accelerated by +8.1% (vs Q2 16: +2.9%; accounts for c.36% of Q3 16 revenue), once again fuelled by double-digit growth in the IOL business. Geographically, the APAC region (+25.3% vs Q2 16: +17.1%; accounts for c.36% of Q3 16 revenue) was the largest growth contributor to the business due to strong demand in China and South Korea. However, the growth momentum turned negative in the EMEA region (-6.0% vs Q2 16: +3.7%; accounts for c.33% of Q3 16 revenue) due to sluggish demand in Southern Europe and the Middle East. The dismal performance continued in the Americas region (-6.7% vs Q2 16: -0.4%; accounts for c.31% of Q3 16 revenue), primarily due to the intense competitive environment in the US and ongoing macro headwinds in Brazil. The total reported revenue increased by 2.8% (vs Q2 16: +8.3%) as the FX contribution was minimal during the quarter (-0.1% vs Q2 16: +1.6%). The EBIT margin weakened to 13.7% (vs Q2 16: 15.5%), largely attributable to planned R&D investments in the microsurgery segment (margin down to 16.6% vs Q2 16: 26.1%). Furthermore, unfavourable currency movements led to a net finance expense of €6.9m (vs Q2 16: €1.4m income), lowering the EPS to €0.24 per share (vs Q2 16: €0.38 per share). Management has maintained its FY16 revenue guidance at €1,080-1,120m and the EBIT margin guidance at 13-15%.
19 Jan 17
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Interims results – reassuringly positive
24 Jan 17
Scientific Digital Imaging reported interim results to 31 October 2016, with adjusted EPS of 0.73p, an increase of 21%. Results included a first-time contribution from Sentek, acquired on 28 October 2015, which more than offset a c3% decline in the underlying business. Sentek accounts for c30% of group gross profits and continues to perform in line with expectations. New product development and recent product launches in Synoptics, combined with the contribution from Astles Control Systems (acquired January 2017) should drive improved profitability and free cash flow. We leave forecasts and target price unchanged at 20p.
N+1 Singer - Morning Song 19-01-2017
19 Jan 17
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N+1 Singer - Best Ideas 2017 - Top picks
04 Jan 17
Today we publish our Best Ideas for 2017 - 12 stocks that we believe have excellent prospects in the current year together with a detailed discussion of what we see as the key sector and market themes for 2017. Our top picks are Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec and Severfield.
N+1 Singer - Midatech Pharma - FY trading update: revenue ahead of estimates
20 Jan 17
Midatech’s FY trading update indicates revenue for the period of c. £9.0m, ahead of our £8.0m estimate. The £16.7m (gross) capital raise announced in October allows Midatech to accelerate development of its key programmes. We continue to expect data from a gold nanoparticle (GNP) enabled Phase I diabetes vaccine trial in 2017, followed by the start of clinical trials in brain and liver cancer by early 2018. In addition, Q-Octreotide in our view represents a significant near-term licensing opportunity. We reiterate our Buy recommendation.
N+1 Singer - Sinclair Pharma - FY trading update: revenue ahead of estimates
17 Jan 17
Sinclair’s FY trading update indicates revenue for the period of £37.8m, ahead of our £35.4m estimate. Cash at period-end was slightly below our expectations at £16.8m vs. our £18.5m forecast. Sales of the five key products are in line or slightly ahead of estimates. Importantly, the early indications are positive for the US rollout of Silhouette Instalift™ with practitioner training ahead of schedule. Overall a positive trading update: we reiterate our Buy recommendation and 42p target price.