Zimmer Biomet Plans Returning At Least 65% Of Free Cash Flow To Shareholders Through Dividends And Share Buybacks; Says Board Approved New Stock Repurchase Of Up To $2B In Common Stock
Portfolio Pulse from Benzinga Newsdesk
Zimmer Biomet plans to return at least 65% of its free cash flow to shareholders through dividends and share buybacks. The board has approved a new stock repurchase program of up to $2 billion in common stock. The company also provided its long-range plan for 2024-2027, which includes mid-single-digit percentage revenue growth, adjusted EPS growth at least 1.5 times revenue growth, and free cash flow growing at least 100 basis points faster than adjusted EPS.
May 29, 2024 | 9:09 pm
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Zimmer Biomet plans to return 65% of free cash flow to shareholders through dividends and buybacks, with a new $2B stock repurchase program approved. The company targets mid-single-digit revenue growth, adjusted EPS growth at least 1.5 times revenue growth, and free cash flow growing faster than adjusted EPS from 2024-2027.
The announcement of returning 65% of free cash flow to shareholders through dividends and buybacks is likely to positively impact the stock price in the short term. The approval of a $2B stock repurchase program and the company's strong growth targets for 2024-2027 further support a positive outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100