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Financial Performance - In 2023, the company's net sales increased by 6.5% to $7,394.2 million compared to 2022, with a negative impact of 1.0% from foreign currency exchange rates [169][174]. - Net earnings from continuing operations rose significantly to $1,024.0 million in 2023, up from $290.2 million in 2022, driven by higher net sales and lower operating expenses [170]. - The company expects mid-single digit revenue growth in 2024, with a projected negative impact of approximately 0.5% from foreign currency exchange rates [171]. - In the U.S., net sales grew by 6.9% to $4,288.8 million in 2023, while international sales increased by 6.1% to $3,105.4 million [174][179]. - The company's Knees product category saw a 9.4% increase in net sales to $3,038.4 million, while Hips increased by 3.8% to $1,967.2 million in 2023 [175][180]. - Demand trends contributed positively with an 8.1% increase in volume and mix of product sales in 2023, aided by the recovery of elective surgical procedures [176]. - Global selling prices negatively impacted sales by 0.6% in 2023, reflecting ongoing pricing pressure from healthcare systems [177]. Operating Efficiency - Operating profit margin improved to 17.3% in 2023, up from 10.0% in 2022, due to higher net sales and lower litigation-related charges [181]. - Research and development expenses increased to 6.2% of net sales in 2023, driven by higher personnel costs and compliance spending [186]. - The gross margin percentage improved to 64.2% in 2023, up from 63.3% in 2022, despite lower average selling prices [185]. - Selling, general & administrative (SG&A) expenses increased in amount but decreased as a percentage of net sales in 2023 compared to 2022 [187]. - The company recognized expenses of $151.9 million related to restructuring plans in 2023, down from $191.6 million in 2022 [189]. Cash Flow and Liquidity - Cash flows provided by operating activities from continuing operations were $1,581.6 million in 2023, an increase from $1,356.2 million in 2022 [204]. - Cash flows used in investing activities from continuing operations were $778.9 million in 2023, compared to $522.0 million in 2022, including $134.9 million related to acquisitions [205]. - As of December 31, 2023, the company had $415.8 million in cash and cash equivalents and $1.0 billion available to borrow under a 364-day revolving credit agreement [202]. Tax and Restructuring - The effective tax rate (ETR) on earnings from continuing operations was 4.0% in 2023, down from 27.9% in 2022, primarily due to unrecognized tax benefits [194]. - The company expects to reduce gross annual pre-tax operating expenses by $175 million to $200 million relative to the 2023 baseline expenses by the end of 2025 as part of the 2023 Restructuring Plan [213]. Regional Performance - Operating profit in the Americas increased in 2023, driven by higher net sales from the recovery of elective surgical procedures and new product introductions [198]. - In EMEA, operating profit and operating profit as a percentage of net sales increased in 2023 due to higher net sales and improved pricing [199]. - In Asia Pacific, operating profit increased despite a decline in net sales due to foreign currency exchange rates, offset by higher hedge gains [201]. Legal and Compliance - Total liabilities for litigation matters estimated at $244.1 million as of December 31, 2023, expected to be paid over the next few years [216]. - Future payments from development and distribution agreements could range from $0 to $440 million depending on product R&D and sales milestones [217]. - The company had net assets in legal entities with non-U.S. Dollar functional currencies amounting to $1,854.5 million as of December 31, 2023 [234]. - The company is involved in various ongoing legal proceedings and establishes liabilities for loss contingencies when probable losses can be reasonably estimated [224]. Risk Management - A sensitivity analysis indicated that a 10% change in foreign currency exchange rates could affect earnings by approximately $114 million to $105 million before income taxes through June 2026 [232]. - The majority of the company's debt is fixed-rate, and a 10% change in interest rates would not materially affect interest expense [240]. - The company is exposed to credit risk primarily from cash and cash equivalents, derivative instruments, and accounts receivable, but believes reserves for losses are adequate [241]. - The company evaluates the carrying value of goodwill and intangible assets annually, with two reporting units exceeding their carrying values by more than 50% during the latest testing [227]. - The company enters into supply contracts for raw materials with terms of 12 to 24 months to mitigate commodity price risks [237]. - Management regularly assesses the need for changes to the net realizable values of inventory based on market conditions and demand patterns [219].

The ROSA® Shoulder System Becomes the First-to-Market Robotic Surgical Assistant for Shoulder Arthroplasty and the Fourth ROSA Robotics Application in Five Years WARSAW, Ind., Feb. 22, 2024 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced U.S. Food and Drug Administration (FDA) 510(k) clearance of the ROSA® Shoulder System for robotic-assisted shoulder replacement surgery. ROSA Shoulder is the world's first robotic surgery system for shoul ...

Zimmer Biomet (ZBH) is likely to grow in the coming quarters, backed by the implementation of meaningful strategic pillars within its Knee business. The company is benefitting from improved procedural volumes in a gradually stabilizing global musculoskeletal market. Zimmer Biomet is also bolstering its foothold in emerging markets for long-term growth opportunities, buoying optimism.Meanwhile, unfavorable solvency and an intense competitive landscape remain concerning for the company.In the past year, this ...

WARSAW, Ind., Feb. 21, 2024 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that its Board of Directors has approved the payment of a quarterly cash dividend to stockholders for the first quarter of 2024. The cash dividend of $0.24 per share is payable on or about April 30, 2024 to stockholders of record as of the close of business on March 29, 2024. About Zimmer Biomet Zimmer Biomet is a global medical technology leader with a comprehen ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores.What are the Zacks Style Scores?The Zacks Style Sc ...

-- Company's Recently Established Health Equity Division Leads Efforts to Address Disparities in Health Access and Outcomes --  WARSAW, Ind., Feb. 12, 2024 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, signed the Global Health Equity Network's (GHEN) Zero Health Gaps Pledge, a commitment from CEOs across industries and regions for their organizations to embed health equity in core strategies, operations and investments. Zimmer Biomet's Health Equity d ...

-- Booth Highlights Include Persona® OsseoTi® Keel Tibia, a Preview of ROSA® Shoulder*, Pending 510(k) Clearance, and the HAMMR™ Automatic Hip Impaction System-- WARSAW, Ind., Feb. 12, 2024 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that it is showcasing the latest innovations across its product portfolio at the 2024 annual meeting of the American Academy of Orthopaedic Surgeons (AAOS) this week in San Francisco. During the meeting, ...

Financial Data and Key Metrics Changes - The company reported a constant currency revenue growth of 7.5% for the full year 2023, with adjusted earnings per share (EPS) growing nearly 9.5% [56][74] - Adjusted gross margin was 72.5%, up 80 basis points from the prior year, driven by favorable mix, higher volumes, and lower royalties [6] - Operating cash flow for the full year was just under $1.6 billion, with free cash flow totaling $979 million [7] Business Line Data and Key Metrics Changes - Global knees grew 10.2% for the full year, with a quarterly growth of 5.6% [61][74] - Global hips grew 5.1% for the full year, with a quarterly growth of 3.6% [54][74] - The S.E.T. category grew 3.8% for the full year, with a quarterly growth of 6.4% [62][74] Market Data and Key Metrics Changes - U.S. growth was 4.4%, while international growth was 8.7% [53] - The company experienced a robust sequential step-up across all regions compared to the third quarter [53] Company Strategy and Development Direction - The company is committed to a multi-year growth strategy, targeting a minimum revenue growth of 5% in 2024, with EPS growth expected to outpace revenue growth [2][58] - The strategic imperatives include focusing on people and culture, operational excellence, and innovation and diversification [38][48] - The company plans to launch over 40 new products in the next 24 months, aiming to establish category leadership [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market dynamics, citing strong demand and procedure volume as key drivers for growth [57] - The company anticipates a slight decline in gross margins due to lower foreign exchange hedge gains and increased manufacturing costs, but expects operational efficiencies to offset this [10][66] - Management emphasized the importance of new product launches and improved supply chain stability as critical factors for achieving growth targets in 2024 [80][125] Other Important Information - The company completed a $500 million share buyback program, reflecting confidence in its business outlook [19][74] - A global restructuring program was initiated to streamline operations and enhance efficiency, expected to result in cash charges of $125 million to $150 million over the next two years [67] Q&A Session Summary Question: What are the key assumptions for the 5% to 6% constant currency growth in 2024? - Management stated that the guidance reflects a well-studied commitment to operational improvements and market dynamics, with no significant headwinds anticipated [84][85] Question: Does the $500 million share buyback imply difficulty in finding good M&A targets? - Management clarified that the buyback does not indicate a deterioration in M&A opportunities, emphasizing continued confidence in executing smart acquisitions [85] Question: What impact did supply challenges have on revenue in 2023? - Management noted that while quantifying the exact impact is difficult, supply challenges hindered the ability to pursue new business effectively, which is expected to improve in 2024 [108][109] Question: What are the expectations for gross margins in 2024? - Management indicated that gross margins are expected to be slightly down year-over-year due to various headwinds, but operational efficiencies are anticipated to help maintain overall profitability [119][120] Question: Can you elaborate on the dynamics of cementless knee penetration? - Management highlighted that the current penetration rate is around 18% to 20%, with plans to rapidly increase it to 50% to 60% through strategic product launches and market development [136]

Zimmer Biomet Holdings, Inc. (ZBH) posted fourth-quarter 2023 adjusted earnings per share (EPS) of $2.20, exceeding the Zacks Consensus Estimate by 2.3%. The adjusted figure increased 17% year over year.The quarter’s adjustments included certain amortization, restructuring and European Union Medical Device Regulation-related charges, among others.On a reported basis, the company registered earnings of $2.01 per share, which reflected a significant improvement from the year-ago loss of 62 cents per share.Ful ...