We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for Zimmer Biomet (ZBH) in Q4 Earnings?
Read MoreHide Full Article
Zimmer Biomet Holdings, Inc. (ZBH - Free Report) is set to report fourth-quarter 2019 results on Feb 4, before market open.
The company delivered a positive earnings surprise of 0.57% in the last reported quarter. The metric beat the consensus mark in the preceding four quarters, the average beat being 0.41%.
Let’s take a look at how things are shaping up prior to this announcement.
Zimmer Biomet Holdings, Inc. Price and EPS Surprise
The company’s multinational distribution agreement with Align Technology (inked in September 2019) for the latter’s iTero Element family of intraoral scanners is expected to have contributed to the top line in the fourth quarter.
Zimmer Biomet is likely to have registered strong sales growth in the Asia Pacific, the Americas and EMEA (Europe, Middle East and Africa) regions in the fourth quarter on the solid performance of its knee portfolio.
The S.E.T. arm (comprising Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma) is likely to have performed well in the fourth quarter, banking on supply stability, which continues to grow sales force confidence, increased traction in the specialized sales channel and new products across the business. Earlier, the company planned to prioritize innovation and accelerate investments in its specialized sales channel in the second half of 2019 to further intensify focus on high-growth S.E.T. markets. Impacts of this might get reflected in fourth-quarter results. Further, the ROSA portfolio has been performing well, which is likely to have continued in the fourth quarter as well.
Within Dental, the company has been gaining traction over the past few quarters, courtesy of investments in priority areas and operational improvements.
However, in Spine & CMF, Zimmer Biomet has been witnessing growth deceleration due to difficult comps.
Over the past several months, Zimmer Biomet has been securing a number of important regulatory clearances for knee, brain and spine applications under its ROSA robotics platform. Strength in its FDA-cleared JuggerStitch meniscal repair device, which is the next-generation meniscus repair technology, along with robust product array is expected to have contributed to the top line in the quarter.
Per Zimmer Biomet, impacts of the focus on its restructuring program instead of generating a profit motive in 2019, which is a two-year effort to streamline its operations, are likely to get reflected in fourth-quarter results. The momentum from the move is also expected to get reflected in the company’s operating results.
Meanwhile, as Zimmer Biomet has been concentrating solely on its restructuring initiative, its operating segments are unlikely to have delivered robust performances in the fourth quarter.
Further, for 2019, the company expects the impact of foreign exchange to be at the high end of 125-175 basis points.
Q4 & 2019 Estimates
The Zacks Consensus Estimate for total revenues of $2.11 billion suggests growth of 1.7% from the prior-year quarter’s reported figure. Also, the consensus mark for earnings of $2.26 per share indicates a 3.67 % rise from the year-ago quarter's reported figure.
For the year, the Zacks Consensus Estimate for total revenues is pegged at $7.96 billion. The same for earnings is pegged at $7.83 per share, suggesting an improvement of 2.49% from the year-ago period.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Zimmer Biomet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Zimmer Biomet has an Earnings ESP of +0.38%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering, as these too have the right combination of elements to post an earnings beat this quarter.
DENTSPLY SIRONA Inc. (XRAY - Free Report) presently has an Earnings ESP of +1.16% and a Zacks Rank #2.
Tandem Diabetes Care, Inc. (TNDM - Free Report) has an Earnings ESP of +27.59%. It currently sports a Zacks Rank #1.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
What's in the Cards for Zimmer Biomet (ZBH) in Q4 Earnings?
Zimmer Biomet Holdings, Inc. (ZBH - Free Report) is set to report fourth-quarter 2019 results on Feb 4, before market open.
The company delivered a positive earnings surprise of 0.57% in the last reported quarter. The metric beat the consensus mark in the preceding four quarters, the average beat being 0.41%.
Let’s take a look at how things are shaping up prior to this announcement.
Zimmer Biomet Holdings, Inc. Price and EPS Surprise
Zimmer Biomet Holdings, Inc. price-eps-surprise | Zimmer Biomet Holdings, Inc. Quote
Key Catalysts
The company’s multinational distribution agreement with Align Technology (inked in September 2019) for the latter’s iTero Element family of intraoral scanners is expected to have contributed to the top line in the fourth quarter.
Zimmer Biomet is likely to have registered strong sales growth in the Asia Pacific, the Americas and EMEA (Europe, Middle East and Africa) regions in the fourth quarter on the solid performance of its knee portfolio.
The S.E.T. arm (comprising Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma) is likely to have performed well in the fourth quarter, banking on supply stability, which continues to grow sales force confidence, increased traction in the specialized sales channel and new products across the business. Earlier, the company planned to prioritize innovation and accelerate investments in its specialized sales channel in the second half of 2019 to further intensify focus on high-growth S.E.T. markets. Impacts of this might get reflected in fourth-quarter results. Further, the ROSA portfolio has been performing well, which is likely to have continued in the fourth quarter as well.
Within Dental, the company has been gaining traction over the past few quarters, courtesy of investments in priority areas and operational improvements.
However, in Spine & CMF, Zimmer Biomet has been witnessing growth deceleration due to difficult comps.
Over the past several months, Zimmer Biomet has been securing a number of important regulatory clearances for knee, brain and spine applications under its ROSA robotics platform. Strength in its FDA-cleared JuggerStitch meniscal repair device, which is the next-generation meniscus repair technology, along with robust product array is expected to have contributed to the top line in the quarter.
Per Zimmer Biomet, impacts of the focus on its restructuring program instead of generating a profit motive in 2019, which is a two-year effort to streamline its operations, are likely to get reflected in fourth-quarter results. The momentum from the move is also expected to get reflected in the company’s operating results.
Meanwhile, as Zimmer Biomet has been concentrating solely on its restructuring initiative, its operating segments are unlikely to have delivered robust performances in the fourth quarter.
Further, for 2019, the company expects the impact of foreign exchange to be at the high end of 125-175 basis points.
Q4 & 2019 Estimates
The Zacks Consensus Estimate for total revenues of $2.11 billion suggests growth of 1.7% from the prior-year quarter’s reported figure. Also, the consensus mark for earnings of $2.26 per share indicates a 3.67 % rise from the year-ago quarter's reported figure.
For the year, the Zacks Consensus Estimate for total revenues is pegged at $7.96 billion. The same for earnings is pegged at $7.83 per share, suggesting an improvement of 2.49% from the year-ago period.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Zimmer Biomet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Zimmer Biomet has an Earnings ESP of +0.38%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering, as these too have the right combination of elements to post an earnings beat this quarter.
DexCom, Inc. (DXCM - Free Report) currently has an Earnings ESP of +17.07% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
DENTSPLY SIRONA Inc. (XRAY - Free Report) presently has an Earnings ESP of +1.16% and a Zacks Rank #2.
Tandem Diabetes Care, Inc. (TNDM - Free Report) has an Earnings ESP of +27.59%. It currently sports a Zacks Rank #1.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>