Zimmer Biomet Holdings, Inc. ZBH is all set to reveal its third-quarter 2024 financial results on Oct. 30, bright and early.
The previous quarter showcased earnings of $2.01, outshining the Zacks Consensus Estimate by 1.5%. Impressively, ZBH has been consistently beating earnings expectations in the last four quarters, averaging a surprise of 2.84%.
Anticipated Figures for ZBH’s Q3
The Zacks Consensus Estimate for revenues predicts a rise to $1.81 billion, marking a 3.3% increase from the previous year.
As for earnings, the anticipated figure stands at $1.75 per share, reflecting a 6.1% surge from the same period a year ago.
Forecast Trends Preceding ZBH’s Q3 Earnings
Over the past month, the Zacks Consensus Estimate for earnings has slightly declined by 1.1% to $1.75 per share.
Before the curtain lifts on the forthcoming financial report, let’s delve into the potential developments that may have shaped the landscape for this healthcare technology industry bellwether during the quarter under review.
Influential Factors
Zimmer Biomet is anticipated to have experienced robust growth in the third quarter, propelled by stellar performances across its various business segments.
The Hip business is expected to have seen substantial growth, owing to the company’s innovative range of solutions in navigation, direct anterior stems, and surgical impactors.
Despite some setbacks in the business during the second quarter, Zimmer Biomet made significant strides with the launch of the surgical impactor HAMMR and the acquisition of OrthoGrid Systems, Inc. These initiatives are likely to contribute to a significant revenue upswing in the Hip category for the third quarter.
On the other hand, the Knees business tackled challenges in the supply chain but exhibited notable growth in the second quarter. This growth trajectory is anticipated to continue in the third quarter, fueled by upcoming product launches like ROSA for knees and the partnership with THINK Surgical for TMINI, a miniature handheld robotic system for total knee arthroplasty.
In the realm of S.E.T business, noteworthy growth was witnessed in the second quarter, with all segments experiencing positive momentum. This trend is likely to persist in the upcoming financial report.
Prognostication for ZBH
Based on our analytical model, a stock boasting a positive Earnings ESP alongside a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) presents a higher likelihood of surpassing estimates. Unfortunately, ZBH does not fit this bill, as is evident below.
Earnings ESP: Zimmer Biomet holds an Earnings ESP of -1.65%.
Zacks Rank: The company currently holds a Zacks Rank #4 (Strong).
Promising Stocks to Monitor
Consider turning your attention to some medical stocks that exhibit the potential for earnings outperformance in this reporting cycle.
Atea Pharmaceuticals AVIR and RadNet RDNT are two such companies expected to make waves this quarter.
AVIR has an Earnings ESP of +13.13%, and RDNT boasts an Earnings ESP of +20.00%. Keep an eye out for their upcoming financial results, as they might just spring a positive surprise.
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