Zimmer Biomet Holdings, Inc. (NYSE: ZBH) is poised to unveil its third-quarter 2024 financial results on Oct. 30, prior to the market’s commencement.
In the prior quarter, the firm’s earnings of $2.01 outshined the Zacks Consensus Estimate by 1.5%. Zimmer Biomet Holdings, Inc. has consistently outperformed expectations, marking an average positive surprise of 2.84% over the last four quarters.
Anticipated Performance for ZBH in Q3
As per the Zacks Consensus Estimate, revenues are forecasted to hit $1.81 billion, representing a 3.3% increase from the corresponding figure of the previous year.
The Zacks Consensus Estimate for earnings stands at $1.75 per share, showcasing a 6.1% improvement from the previous year’s reported numbers.
Pre-Earnings Estimate Adjustments for ZBH
Over the past 30 days, the Zacks Consensus Estimate for earnings has taken a slight dip of 1.1%, settling at $1.75 per share.
Before delving into the forthcoming quarter’s outcomes, let’s briefly examine the factors that might have influenced this leading MedTech major.
Critical Factors Affecting ZBH’s Performance
Zimmer Biomet is expected to experience robust growth in the upcoming quarter, propelled by strong showings across its business segments.
The Hip division likely saw an uptick due to the company’s leading-edge suite of solutions, including navigation in direct anterior stems and surgical impactors.
Despite facing challenges in the Knees segment from a supply angle and encountering high ASP cases, Zimmer Biomet revealed durable knee growth of 5% year over year in the preceding quarter, projecting a continuation of this favorable trend into the current quarter.
The company anticipates launching two distinct ROSA for knees in the near future and has a promising partnership with THINK Surgical for the revolutionary TMINI miniature handheld robotic system designed for total knee arthroplasty, slated for release in the latter half of 2024.
Furthermore, the company’s S.E.T. business experienced mid-single-digit growth in the second quarter, propelled by robust performances in critical areas such as CMFT, upper extremities, and sports, all showing high-single-digit growth on average. Expectations are high for this segment’s sustained growth trajectory through the third quarter.
Insight into ZBH’s Stock Performance
Zimmer Biomet Holdings, Inc. price-eps-surprise | Zimmer Biomet Holdings, Inc. Quote
Despite a softer-than-anticipated performance in the U.S. Knees business, ZBH envisions positive revenue growth trends in the aforementioned category for the third quarter.
While the industry awaits the company’s financial results eagerly, a look into its future prospects for investors offers a blend of trepidation and anticipation.
Potential Picks in the Medical Sector
For investors seeking potential opportunities in the medical domain, companies like Atea Pharmaceuticals (NASDAQ: AVIR), RadNet (NASDAQ: RDNT), and TransMedics Group (NASDAQ: TMDX) present compelling prospects. Each of these firms boasts a unique combination of factors that hold promise for surpassing earnings expectations.
Speculation and projections aside, the market eagerly awaits the unveiling of ZBH’s Q3 report, with all eyes fixed on how the company translates its robust operational performance into tangible financial outcomes.
