Zimmer Biomet Gears Up for Q3 Earnings ReportZBH is set to announce its third-quarter 2024 earnings on October 30, before the market opens.
In the previous quarter, Zimmer Biomet’s earnings were reported at $2.01, surpassing the Zacks Consensus Estimate by 1.5%. This marked the fourth consecutive quarter of earnings beats, averaging a surprise of 2.84% over this period.
Quarter 3 Earnings Outlook for ZBH
The Zacks Consensus Estimate for revenues stands at $1.81 billion, reflecting a 3.3% increase from the same quarter last year.
For earnings, the consensus estimate is $1.75 per share, showing a 6.1% rise compared to last year’s figures.
Recent Changes in Estimates for ZBH
Over the past month, the earnings estimate for ZBH has slightly decreased by 1.1%, now set at $1.75 per share.
Now, let’s explore the factors that might have influenced Zimmer Biomet’s performance this quarter.
Key Factors Influencing Zimmer Biomet’s Performance
Zimmer Biomet likely enjoyed substantial growth during the third quarter, supported by strong performances across its business segments.
The Hip division is anticipated to deliver solid growth due to the company’s advanced solutions in navigation technology and direct anterior stems along with new surgical impactors. Following some struggles earlier in the year, Zimmer Biomet has successfully launched the HAMMR surgical impactor, which has been well-received. Moreover, in this quarter, they announced an agreement to acquire OrthoGrid Systems, bringing in cutting-edge AI-based surgical assistance and a wealth of patents.
Internationally, Zimmer Biomet is poised to launch a new generation of hip robotics. These developments are expected to significantly boost revenues in this sector for the quarter.
The company faced some supply chain challenges in its Knees division, notably affecting high average selling price (ASP) cases.
Analyzing Zimmer Biomet’s Price and EPS Surprises
Zimmer Biomet Holdings, Inc. price-eps-surprise | Zimmer Biomet Holdings, Inc. Quote
While growth in the U.S. knee segment was softer than anticipated, the division still realized a 5% year-over-year growth in the second quarter, a trend likely to carry over into the third quarter. The company plans to introduce two new ROSA robotic systems for knees over the next few quarters, and their collaboration with THINK Surgical on TMINI—a handheld robotic system for total knee arthroplasty—may also positively influence revenue during this timeframe.
In the second quarter, the S.E.T division exhibited mid-single-digit growth, driven largely by upper extremities and sports sectors, which saw growth rates in the high single digits. This consistent growth marks a notable trend that is expected to continue.
What to Expect from ZBH
According to our model, stocks with a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) have a better chance of surpassing estimates. This time, however, conditions are different.
Earnings ESP: Currently, Zimmer Biomet has an Earnings ESP of -1.65%.
Zacks Rank: The company is rated #4 (Sell) at present.
Other Stocks to Keep an Eye On
Here are some other medical stocks that might attract your interest due to their favorable earnings outlooks.
Atea Pharmaceuticals AVIR holds an Earnings ESP of +13.13% and is rated #1 currently. The company will announce its Q3 2024 results on November 13. Atea’s earnings surpassed estimates in half of the preceding four quarters, with an average surprise of 5.23%.
RadNet RDNT boasts an Earnings ESP of +20.00% and carries a #2 rating. It is expected to report its Q3 figures on November 13, with an average surprise of 98.23% over the past four quarters, including three earnings beats.
TransMedics Group TMDX has an Earnings ESP of +26.63% and is currently ranked #3. The company is anticipated to release its Q3 results on November 4, with expectations of a remarkable 333.3% surge in EPS from last year.
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