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Zimmer Biomet Holdings, Inc. (ZBH), headquartered in Warsaw, Indiana, designs, develops, manufactures, and markets medical equipment. Valued at $22.6 billion by market cap, the company offers orthopedic, dental, and spinal reconstructive implants, as well as bone cement and related surgical products. The orthopedic device maker is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Wednesday, Aug. 7.
Ahead of the event, analysts expect ZBH to report a profit of $1.98 per share on a diluted basis, up 8.8% from $1.82 per share in the year-ago quarter. The company beat or matched the consensus estimates in the last four quarters.
Zimmer Biomet’s progress in innovation and FDA clearances for its ROSA Shoulder System and the Z1 Femoral Hip Stem helped it report an EPS of $1.94 in the most recent quarter, which beat the consensus estimate by 3.7%.
For the full year, analysts expect ZBH to report EPS of $8.10, up 7.3% from $7.55 in fiscal 2023.
ZBH stock has underperformed the S&P 500’s ($SPX) 16.5% gains on a YTD basis, with shares down 9.6% during this period. Similarly, it underperformed the S&P 500 Healthcare Sector SPDR’s (XLV) 9% gains over the same time frame.
On Jul. 1, ZBH shares closed down more than 1% after leading investment bank Piper Sandler downgraded the stock to Neutral from Overweight.
On May 2, ZBH reported its Q1 results. The company’s revenue was $1.89 billion, beating Wall Street forecasts of $1.87 billion. ZBH reiterated its full-year guidance and expects its adjusted EPS to be between $8 and $8.15. The company expects its revenue to increase by 4.5% to 5.5%. ZBH shares closed down marginally on the day the results were released and have been on a downtrend since then.
Analysts’ consensus opinion on ZBH stock is bullish, with a “Moderate Buy” rating overall. Out of 27 analysts covering the stock, seven advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, 16 give a “Hold” rating, and two recommend a “Strong Sell.” The average analyst price target for ZBH is $130.50, indicating a potential upside of 18.6% from the current levels.
On the date of publication, Kritika Sarmah 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.
