Zimmer Biomet Holdings, Inc. (NYSE: ZBH) is gearing up to disclose its third-quarter earnings on October 30, prior to the market opening.
In the previous quarter, the company outperformed expectations with earnings of $2.01, surpassing the Zacks Consensus Estimate by 1.5%. Impressively, ZBH has consistently exceeded earnings projections over the last four quarters, with an average surprise of 2.84%.
Q3 Outlook for ZBH
Analysts forecast revenues to reach $1.81 billion in the upcoming quarter, signaling a 3.3% increase from the same period last year. Earnings estimates stand at $1.75 per share, reflecting a 6.1% enhancement compared to the previous year.
Analyst Discourse Prior to ZBH’s Q3 Earnings
The consensus forecast for earnings has slightly decreased by 1.1% to $1.75 per share within the last 30 days.
Delving into the potential performance of this MedTech giant in the upcoming earnings report reveals intriguing insights.
Industry Factors Impacting ZBH
Zimmer Biomet is poised to demonstrate robust growth in the third quarter, primarily driven by stellar performance across its business divisions.
In particular, the company’s Hip business is expected to showcase notable growth, supported by its innovative suite of navigation solutions, including direct anterior stems and surgical impactors.
Despite encountering challenges in the Knees segment, ZBH remains optimistic about its strategic initiatives, including the introduction of new products like the surgical impactor HAMMR and the acquisition of OrthoGrid Systems, Inc.
The company is also set to launch a second generation of hip posterior robotics, aiming to bolster revenue within this category.
Moreover, ZBH anticipates growth in the Knees business, along with promising developments such as the upcoming release of ROSA for knees and the collaboration with THINK Surgical for TMINI.
Noteworthy performance in the S.E.T. business segment is also anticipated, with a focus on key areas such as CMFT, upper extremities, and sports, all contributing to sustained growth momentum.
Assessment of ZBH’s Future Trajectory
According to our analysis, stocks that exhibit a positive Earnings ESP along with a Zacks Rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) typically have a higher likelihood of exceeding estimates. However, Zimmer Biomet currently falls short of these criteria.
Earnings ESP: -1.65%
Zacks Rank: #4 (Strong)
Promising Stock Options in the Medical Field
While ZBH’s performance is eagerly anticipated, other medical stocks show promise heading into the upcoming earnings season.
Atea Pharmaceuticals (NASDAQ: AVIR) displays an Earnings ESP of +13.13% coupled with a Zacks Rank of #1. AVIR’s track record reveals a mix of beating and missing estimates, with an average surprise of 5.23%.
RadNet (NASDAQ: RDNT) presents an Earnings ESP of +20.00% and a Zacks Rank of #2. With a history of surpassing estimates and an improving EPS projection, RDNT is poised for potential growth.
TransMedics Group (NASDAQ: TMDX) showcases an Earnings ESP of +26.63% along with a Zacks Rank of #3. An anticipated surge in third-quarter EPS highlights TMDX as a compelling option for investment consideration.
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