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Here's How Zimmer Biomet (ZBH) is Poised Ahead of Q2 Earnings
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Zimmer Biomet Holdings, Inc. (ZBH - Free Report) is scheduled to report second-quarter 2024 results on Aug 7, before market open.
In the last reported quarter, the company’s earnings of $1.94 exceeded the Zacks Consensus Estimate by 3.74%. Over the trailing four quarters, its earnings outperformed the consensus estimate on three occasions and matched the same once, the average beat being 2.46%.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter 2024 revenues is pegged at $1.94 billion, suggesting a 3.7% rise from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s second-quarter 2024 earnings per share of $1.98 indicates an 8.8% improvement from the year-ago adjusted earnings.
Estimate Revision Trend Ahead of Earnings
The Zacks Consensus Estimate for Zimmer Biomet’s second-quarter earnings has remained unchanged at $1.98 per share in the past 60 days.
Let's briefly look at how things have progressed for this MedTech major leading up to the announcement.
Factors at Play
Like its industry competitors, Zimmer Biomet’s business, too, has been grappling with supply challenges stemming from the tough geopolitical landscape and healthcare labor shortages. These have been resulting in significant margin deceleration over the past few quarters. However, the company also assumes these headwinds to ease out, banking on its strong pipeline and the solid execution of its growth strategies. This is likely to be reflected in the second-quarter top-line results of the company.
Overall, Zimmer Biomet is expected to have witnessed procedure volume improvement in its legacy business in the first quarter. Strong strategic execution and innovations are expected to have driven second-quarter revenues from the Knees and Hip businesses.
Zimmer Biomet Holdings, Inc. Price and EPS Surprise
Within the Hips business, the company is expected to have witnessed procedure volume recovery, banking on strategic product launches in the second quarter. The company is currently highly optimistic about its complete Hips portfolio with new product launches within three product categories. The first one is direct anterior stem, where ZBH recently received an FDA nod for the triple taper hip stem Z1. The second category is surgical impactor, under which HAMMR has been fully launched. Under the third category, there are two modalities of navigation. The company already has ROSA Hip, and with its partnership with Hip Insights, it has a 510k FDA-approved mixed reality technology. Banking on all these developments, the company is expected to report a strong revenue increase within this category in the second quarter.
Added to this, Zimmer Biomet is expected to have witnessed strong performance across Avenir Complete hip. Moreover, continued solid ROSA pull-through in the hip category, especially in the United States, should significantly contribute to the top line within the Hip category.
Going by our model, the Hip business of Zimmer Biomet is projected to grow 2.5% in the second quarter on a year-over-year basis.
Within the Knees business, apart from a strong recovery in elective procedures, easy comparisons outside the United States, strong knee procedure recovery across most regions, continued global traction in the Persona knee system and continued increase in Rosa procedure penetration and pull-through are expected to have been driving factors.
The company is expected to have also gained from the earlier launch of the cementless knee. The second quarter is likely to have seen strong market penetration of the system. The company, in this regard, noted that the penetration rate in cementless knee is not even in the 20% range and is expected to reach 60% at a very rapid pace, banking on new launches.
The company is also expected to have gained from the uptake of Persona OsseoTi Keel Tibia for Cementless Knee Replacement. With ROSA, the company is expected to have witnessed strong gross adoption in the Ambulatory Surgical Centers settings. Further, the acquisitions of Embody and ReLign are expected to have contributed to Knees sales in the second quarter.
For the Knees business, our model projects 2.8% revenue growth on a year-over-year basis in the second quarter.
The S.E.T. business (comprising Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma) is expected to have performed well across key focus areas of CMFT (craniomaxillofacial and thoracic), sports medicine and upper extremities. The craniomaxillofacial thoracic business is fast gaining market share in conjunction with the rapid adoption of Persona OsseoTi. This is likely to have contributed to the company’s S.E.T business in the second quarter.
However, the business might have witnessed pressure from reimbursement headwinds within the Restorative Therapies. In addition, the company has been experiencing acute supply challenges within Sports and Trauma. These trends are expected to have disrupted the company’s S.E.T. revenues in the fourth quarter.
For this business, our model projects year-over-year revenue growth of 8% in the second quarter.
What Our Model Suggests
Per our proven model, a stock with a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a higher chance of beating estimates. This is not the case, as you can see below.
Earnings ESP: Zimmer Biomet has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are a few medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around.
The company is scheduled to release results for the second quarter of 2024 on Aug 5.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 79.17%. The Zacks Consensus Estimate for the company’s second-quarter EPS indicates a surge of 266.7% from the year-ago quarter reported figure.
QIAGEN (QGEN - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #2. The company is slated to release results for the second quarter of 2024 on Jul 31.
QIAGEN’s earnings surpassed estimates in three of the trailing four quarters, with the average surprise being 1.70%. The Zacks Consensus Estimate for QGEN’s second-quarter EPS indicates a decline of 1.9% from the year-ago quarter figure.
Penumbra (PEN - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #2. The company is scheduled to release results for the second quarter of 2024 on Jul 30.
The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, with the average surprise being 25.97%. The Zacks Consensus Estimate for PEN’s 2024 second-quarter EPS suggests an improvement of 30.2% from the year-ago reported figure.
Image: Bigstock
Here's How Zimmer Biomet (ZBH) is Poised Ahead of Q2 Earnings
Zimmer Biomet Holdings, Inc. (ZBH - Free Report) is scheduled to report second-quarter 2024 results on Aug 7, before market open.
In the last reported quarter, the company’s earnings of $1.94 exceeded the Zacks Consensus Estimate by 3.74%. Over the trailing four quarters, its earnings outperformed the consensus estimate on three occasions and matched the same once, the average beat being 2.46%.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter 2024 revenues is pegged at $1.94 billion, suggesting a 3.7% rise from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s second-quarter 2024 earnings per share of $1.98 indicates an 8.8% improvement from the year-ago adjusted earnings.
Estimate Revision Trend Ahead of Earnings
The Zacks Consensus Estimate for Zimmer Biomet’s second-quarter earnings has remained unchanged at $1.98 per share in the past 60 days.
Let's briefly look at how things have progressed for this MedTech major leading up to the announcement.
Factors at Play
Like its industry competitors, Zimmer Biomet’s business, too, has been grappling with supply challenges stemming from the tough geopolitical landscape and healthcare labor shortages. These have been resulting in significant margin deceleration over the past few quarters. However, the company also assumes these headwinds to ease out, banking on its strong pipeline and the solid execution of its growth strategies. This is likely to be reflected in the second-quarter top-line results of the company.
Overall, Zimmer Biomet is expected to have witnessed procedure volume improvement in its legacy business in the first quarter. Strong strategic execution and innovations are expected to have driven second-quarter revenues from the Knees and Hip businesses.
Zimmer Biomet Holdings, Inc. Price and EPS Surprise
Zimmer Biomet Holdings, Inc. price-eps-surprise | Zimmer Biomet Holdings, Inc. Quote
Within the Hips business, the company is expected to have witnessed procedure volume recovery, banking on strategic product launches in the second quarter. The company is currently highly optimistic about its complete Hips portfolio with new product launches within three product categories. The first one is direct anterior stem, where ZBH recently received an FDA nod for the triple taper hip stem Z1. The second category is surgical impactor, under which HAMMR has been fully launched. Under the third category, there are two modalities of navigation. The company already has ROSA Hip, and with its partnership with Hip Insights, it has a 510k FDA-approved mixed reality technology. Banking on all these developments, the company is expected to report a strong revenue increase within this category in the second quarter.
Added to this, Zimmer Biomet is expected to have witnessed strong performance across Avenir Complete hip. Moreover, continued solid ROSA pull-through in the hip category, especially in the United States, should significantly contribute to the top line within the Hip category.
Going by our model, the Hip business of Zimmer Biomet is projected to grow 2.5% in the second quarter on a year-over-year basis.
Within the Knees business, apart from a strong recovery in elective procedures, easy comparisons outside the United States, strong knee procedure recovery across most regions, continued global traction in the Persona knee system and continued increase in Rosa procedure penetration and pull-through are expected to have been driving factors.
The company is expected to have also gained from the earlier launch of the cementless knee. The second quarter is likely to have seen strong market penetration of the system. The company, in this regard, noted that the penetration rate in cementless knee is not even in the 20% range and is expected to reach 60% at a very rapid pace, banking on new launches.
The company is also expected to have gained from the uptake of Persona OsseoTi Keel Tibia for Cementless Knee Replacement. With ROSA, the company is expected to have witnessed strong gross adoption in the Ambulatory Surgical Centers settings. Further, the acquisitions of Embody and ReLign are expected to have contributed to Knees sales in the second quarter.
For the Knees business, our model projects 2.8% revenue growth on a year-over-year basis in the second quarter.
The S.E.T. business (comprising Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma) is expected to have performed well across key focus areas of CMFT (craniomaxillofacial and thoracic), sports medicine and upper extremities. The craniomaxillofacial thoracic business is fast gaining market share in conjunction with the rapid adoption of Persona OsseoTi. This is likely to have contributed to the company’s S.E.T business in the second quarter.
However, the business might have witnessed pressure from reimbursement headwinds within the Restorative Therapies. In addition, the company has been experiencing acute supply challenges within Sports and Trauma. These trends are expected to have disrupted the company’s S.E.T. revenues in the fourth quarter.
For this business, our model projects year-over-year revenue growth of 8% in the second quarter.
What Our Model Suggests
Per our proven model, a stock with a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a higher chance of beating estimates. This is not the case, as you can see below.
Earnings ESP: Zimmer Biomet has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are a few medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around.
Hims & Hers Health (HIMS - Free Report) has an Earnings ESP of +19.28% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release results for the second quarter of 2024 on Aug 5.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 79.17%. The Zacks Consensus Estimate for the company’s second-quarter EPS indicates a surge of 266.7% from the year-ago quarter reported figure.
QIAGEN (QGEN - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #2. The company is slated to release results for the second quarter of 2024 on Jul 31.
QIAGEN’s earnings surpassed estimates in three of the trailing four quarters, with the average surprise being 1.70%. The Zacks Consensus Estimate for QGEN’s second-quarter EPS indicates a decline of 1.9% from the year-ago quarter figure.
Penumbra (PEN - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #2. The company is scheduled to release results for the second quarter of 2024 on Jul 30.
The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, with the average surprise being 25.97%. The Zacks Consensus Estimate for PEN’s 2024 second-quarter EPS suggests an improvement of 30.2% from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.