ZOLL Upped to Outperform – Analyst Blog

Recently, we upgraded ZOLL Medical Corporation (ZOLL) to Outperform from Neutral with a price target of $38 primarily driven by the better-than-expected second quarter fiscal 2010 results as released on April 29, 2010.

ZOLL Medical Corporation surpassed the Zacks Consensus Estimate by 4 cents in the most recent quarter. The better-than-expected results were driven by the strong performance at its LifeVest business and inclusion of temperature management business. Revenues in the reported quarter went up approximately 15% year over year to $107.1 million.

We are pleased with the company’s wide range of products and its further expansion. As such, ZOLL is the leader in the global market for external defibrillators, which is worth over $1 billion annually. The company is expanding its offerings to sustain growth. We believe that ZOLL’s expansion initiatives for an already wide range of such important/vital products, including pacing, defibrillation, circulation, ventilation, and fluid resuscitation devices, will push the company ahead in the coming years.

ZOLL’s efforts to expand internationally are also encouraging. In the second quarter of fiscal 2010, international sales climbed approximately 15% year over year to $26.1 million. Recently, ZOLL established a direct sales force in Germany which focuses on the LifeVest Wearable Defibrillator business in Germany.

ZOLL conducts international business through subsidiaries in Canada, Germany, Austria, The Netherlands, France, Australia, New Zealand, and the United Kingdom. The company operates a number of additional international offices and has distributorships and sales representative business relationships in the world’s major markets. ZOLL sells its products in more than 140 countries. The international presence has boosted its growth and we believe will continue doing the same in the coming years. Furthermore, ZOLL has made multiple acquisitions in the past which have aided growth and the company is looking for such opportunities further.