Zimmer Biomet’s Shares Decline Amid Mixed Earnings Performance
Zimmer Biomet Holdings, Inc. (ZBH), based in Warsaw, Indiana, is dedicated to designing, manufacturing, and selling medical equipment. With a market cap of $19.3 billion, the company provides orthopedic, dental, and spinal reconstructive implants, along with bone cement and related surgical products.
Market Performance Overview
Over the past year, ZBH’s performance has lagged behind the broader market. The company’s shares have dropped 20.5%, whereas the S&P 500 Index ($SPX) has climbed nearly 12.3%. Year-to-date in 2025, ZBH’s stock is down 9.8%, contrasting with the SPX’s modest gains.
Comparison with Industry ETFs
Focusing on ZBH’s performance compared to the iShares U.S. Medical Devices ETF (IHI), the ETF has seen a 10.5% increase in the past year, outperforming ZBH. YTD returns also favor the ETF, which has gained 5.4% while ZBH has experienced losses during the same period.
Quarterly Earnings Snapshot
Following its Q1 results announcement on May 5, ZBH shares fell over 11%. The company reported an adjusted EPS of $1.81, which surpassed Wall Street’s expectation of $1.76. Additionally, ZBH’s revenue reached $1.91 billion, exceeding forecasts of $1.89 billion. Looking ahead, the company expects a full-year adjusted EPS ranging from $7.90 to $8.10.
Future Earnings Projections
For the current fiscal year, ending December, analysts predict a slight EPS decline to $7.95 on a diluted basis. ZBH has had a mixed earnings surprise history, beating consensus estimates in three of the last four quarters.
Analyst Sentiment
Among 27 analysts covering ZBH, the consensus rating is a “Moderate Buy,” consisting of seven “Strong Buy” ratings, two “Moderate Buys,” 16 “Holds,” and two “Strong Sells.” This assessment reflects a less optimistic outlook compared to three months ago, when eight analysts recommended a “Strong Buy.”
On May 12, Canaccord maintained a “Hold” rating and reduced its price target to $101, indicating a potential upside of 5.9% from current levels. The average price target of $107.21 suggests a 12.5% premium to ZBH’s current price, while the highest target of $125 indicates a significant upside potential of 31.1%.
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 those of the author and do not necessarily reflect those of Nasdaq, Inc.
