ZBH Earnings Prediction
The chart below shows how ZBH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ZBH sees a -0.84% change in stock price 10 days leading up to the earnings, and a +2.18% change 10 days following the report. On the earnings day itself, the stock moves by -0.56%. This data can give you a slight idea of what to expect for the next quarter's release.
ZBH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.02B
4.28%
10.91%
Gross Margin
63.21%
-2.39%
1.38%
Operating Margin
22.71%
0.44%
29.48%
Net Margin
11.86%
-45.17%
-13.18%
EPS
1.20
-40.30%
-2.44%
No Data Available
ZBH Earnings Analysis
Zimmer Biomet Holdings Inc Corporation (ZBH.N) Earnings Conference Call
Positive
Consistent Revenue Growth: In Q4 2024, Zimmer Biomet achieved nearly 5% constant currency revenue growth, marking the twelfth consecutive quarter of mid-single-digit or better growth, driven by strong performance in HiPS and IS segments.
Patient Care Impact: The company impacted the lives of over 4.3 million patients in 2024, showcasing its commitment to improving patient care and outcomes.
Earnings Per Share Increase: Adjusted earnings per share for 2024 increased by 6% to $8, demonstrating effective cost management and operational efficiency.
Strong Cash Generation: Free cash flow for 2024 reached $1.055 billion, aligning with the company's guidance and reflecting strong cash generation capabilities.
Foot and Ankle Market Expansion: The recent acquisition of Paragon 28 is expected to enhance Zimmer Biomet's portfolio in the rapidly growing foot and ankle market, projected to contribute to revenue growth and strengthen market position.
Negative
Increased Financial Strain: Net interest and other adjusted non-operating expenses increased by $62 million compared to the prior year, driven by higher debt and interest rates on refinanced debt, indicating increased financial strain.
Earnings Per Share Decline: GAAP diluted earnings per share dropped to $1.20 from $2.01 in the prior year, reflecting a significant decline in profitability despite higher sales and operating profit.
Gross Margin Decline: Adjusted gross margin decreased to 71.3%, lower than the previous year, primarily due to capitalized cost increases impacting the P&L, suggesting challenges in cost management.
Cautious Revenue Growth Outlook: The 2025 guidance anticipates constant currency revenue growth of only 3% to 5%, with a significant foreign exchange headwind expected to reduce reported revenue growth to 1% to 3.5%, indicating a cautious outlook.
Acquisition Impact on EPS: The acquisition of Paragon 28 is expected to be approximately 3% dilutive to adjusted EPS in 2025, highlighting potential challenges in maintaining earnings growth amidst integration costs.
ZBH FAQs
How does ZBH typically perform around its earnings report dates?
Is Zimmer Biomet Holdings Inc (ZBH) Q4 2024 Earnings Call Summary positive or negative?
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ZBH Earning Call Sentiment
Earnings call transcript: Zimmer Biomet Q4 2024 sees strong sales growth
ZBH.N
1.16%Positive
The earnings call revealed strong financial performance with increased net sales, EPS, and cash flow. The company plans to continue share repurchases and has a positive growth outlook with new product launches. While there are some concerns about ERP issues and currency headwinds, the overall sentiment remains positive due to robust growth in key segments and strategic acquisitions. The Q&A section provided additional confidence in management's strategy, despite some unclear responses. The positive guidance and ongoing shareholder returns are expected to drive a positive stock price movement.
