Zimmer Biomet Holdings, Inc. is all set to reveal its third-quarter 2024 financial results on Oct. 30, before the markets commence trading.
The latest earnings release witnessed the company exceeding the Zacks Consensus Estimate by a modest 1.5% with earnings of $2.01. Impressively, Zimmer Biomet Holdings has outperformed expectations in the last four quarters with an average positive surprise of 2.84%.
Anticipated Q3 Performance
Analysts predict a revenue projection of $1.81 billion for the quarter, indicating a 3.3% rise from the figures reported a year ago. Earnings are expected to come in at $1.75 per share, reflecting a 6.1% improvement from the previous year.
Estimate Alterations Prior to Q3 Earnings
Over the last month, the consensus estimate for earnings saw a marginal decline of 1.1% to $1.75 per share.
An insight into the operational performance of this MedTech giant is crucial to anticipating its third-quarter outcomes.
Factors Impacting Performance
Zimmer Biomet is likely to showcase robust growth in the upcoming quarter, supported by the strong performance of its various business segments.
The progress in the Hip business can be attributed to the company’s comprehensive line of solutions in navigation and direct anterior stems. Despite lagging behind the market in the previous quarter, the introduction of innovative products such as the surgical impactor HAMMR and the recent acquisition of OrthoGrid Systems, Inc are expected to drive revenue growth in this sector.
In the Knees business, supply challenges have impacted high ASP cases, but the company still achieved 5% year-over-year growth in the preceding quarter. The deployment of different ROSA models for knees and the partnership with THINK Surgical for TMINI project optimism for the third quarter.
The S.E.T. business demonstrated consistent mid-single-digit growth driven by key focus areas in the second quarter. This growth trajectory is anticipated to continue into the present quarter with optimistic projections from various facets of the business.
Evaluating ZBH’s Prospects
According to our analytical model, stocks with a favorable Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) tend to outperform estimates. However, Zimmer Biomet Holdings currently falls short on these criteria with a negative Earnings ESP of -1.65% and a Zacks Rank of #4 (Strong).
Exploring Alternative Investment Options
Other medical stocks worth considering for potential earnings beats in the current reporting cycle include Atea Pharmaceuticals (NASDAQ: AVIR), RadNet (NASDAQ: RDNT), and TransMedics Group (NASDAQ: TMDX) with promising Earnings ESP figures and Zacks Rank statuses.
Investors are eagerly awaiting the financial results of these companies, as they exhibit promising growth prospects and potential investment opportunities.