Zimmer Biomet Geared Up for Key Earnings Announcement Amid Mixed Market Performance
Zimmer Biomet Holdings, Inc. (ZBH), based in Warsaw, Indiana, specializes in creating and selling medical equipment. With a market capitalization of $21.8 billion, the company manufactures orthopedic, dental, and spinal reconstructive implants, alongside bone cement and related surgical products. It is set to reveal its fiscal fourth-quarter earnings for 2024 on Thursday, Feb. 6, before the market opens.
Anticipated Earnings and Yearly Projections
Leading up to this financial event, analysts predict that ZBH will report a profit of $2.30 per share on a diluted basis, representing a 4.6% increase from $2.20 per share from the same quarter last year. Recently, the company has outperformed consensus estimates in three of the past four quarters, although there was one instance of missing the forecast.
Year-End Expectations
Looking at the broader picture, analysts estimate ZBH’s earnings per share (EPS) for the entire year to be $7.99, which marks a 5.8% growth from fiscal 2023’s $7.55. Projections indicate an even stronger jump to $8.57 EPS in fiscal 2025, up 7.3% year over year.
Stock Performance Compared to the Market
Over the last 52 weeks, ZBH stock has struggled, dropping 10.4%, while the S&P 500 ($SPX) has increased by 26.5%. Additionally, ZBH underperformed compared to gains in the Health Care Select Sector SPDR Fund (XLV) during this period.
Challenges Facing the Company
The recent lackluster stock performance can be attributed to various factors, including staffing shortages, supply chain issues, trade and geopolitical tensions, high interest rates, as well as difficulties in the dental treatment and hip implant segments. Issues surrounding reimbursement and supply shortages have also affected ZBH’s restorative therapies and sports and trauma divisions, ultimately impacting its financial results.
Latest Earnings Report and Analyst Ratings
On Oct. 30, ZBH shares saw a rise of over 5% following its Q3 results announcement. However, its adjusted EPS of $1.74 fell short of Wall Street’s expectations of $1.75. The company recorded revenue of $1.82 billion, surpassing forecasts of $1.8 billion. For the full year, ZBH anticipates adjusted EPS to fall between $7.95 and $8.05.
The consensus among analysts currently stands at a “Moderate Buy” for ZBH stock. Out of 28 analysts monitoring the stock, eight recommend a “Strong Buy,” two advise a “Moderate Buy,” 16 offer a “Hold,” and two suggest a “Strong Sell.” The average analyst price target for ZBH is $123.56, indicating a potential upside of 12.8% from the stock’s current position.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
