Core Viewpoint - Zimmer Biomet's shares have underperformed the S&P 500, losing about 0.5% in the past month, raising questions about its upcoming earnings release and potential for a breakout [1]. Group 1: Earnings Estimates and Trends - Fresh estimates for Zimmer Biomet have trended downward over the past month, indicating a negative outlook [2][4]. - The stock has a Zacks Rank of 4 (Sell), suggesting expectations of below-average returns in the coming months [4]. Group 2: VGM Scores - Zimmer Biomet has an average Growth Score of C, a Momentum Score of F, and a Value Score of B, placing it in the top 40% for value investment strategy [3]. - The aggregate VGM Score for Zimmer is C, which is relevant for investors not focused on a single strategy [3]. Group 3: Industry Performance Comparison - In comparison, Stryker, a competitor in the same medical products industry, has gained 0.9% over the past month and reported revenues of $5.87 billion, reflecting a year-over-year increase of 11.9% [5]. - Stryker's earnings per share (EPS) for the last quarter was $2.84, up from $2.50 a year ago, and it is expected to post an EPS of $3.06 for the current quarter, representing a year-over-year change of 8.9% [5][6].

Core Insights - The article highlights the upcoming global medical conferences organized by the company, including the first Global Aesthetic Technology Conference on June 12, 2025, and the second Global Medical Technology Conference on July 17, 2025 [1] - Kevin Thornal has been appointed as the President of Global Business and Americas Group at Zimmer Biomet, effective July 1, 2025, where he will oversee commercial operations in the Americas and the strategic execution of various business units [1][4] Company Overview - Zimmer Biomet, founded in 1927 and headquartered in Warsaw, Indiana, focuses on the research, design, production, and sales of orthopedic implants and related surgical products, covering areas such as knee joints, hip joints, spine, trauma, sports medicine, and dental [5][6] - The company operates in over 100 countries with approximately 18,000 employees and ranks third in the global orthopedic field, holding the number one market share in joint products [6] Leadership Insights - Ivan Tornos expressed confidence in Thornal's ability to drive business growth and enhance operational excellence, emphasizing his extensive industry experience [5] - Thornal expressed enthusiasm about returning to the orthopedic field and aims to accelerate the launch of new products to meet clinical needs in musculoskeletal health [5] Product Highlights - The Persona Knee System offers various implant configurations to meet different anatomical and surgical needs, aiming to enhance patient comfort and mobility [6] - The Taperloc Hip System utilizes advanced design and materials to improve the success rate of hip replacement surgeries and long-term patient satisfaction [6] - The Continuum Trabecular Metal Acetabular System is designed for total hip replacement surgeries, featuring highly cross-linked polyethylene materials for superior wear resistance and aging capabilities [6]

Core Viewpoint - Zimmer Biomet (ZBH) is focusing on strategic priorities, new product launches, and international expansion, which enhances confidence in the stock despite macroeconomic challenges and foreign exchange issues [1] Group 1: Favorable Factors - The global musculoskeletal market is showing gradual stability with better-than-expected sales growth in certain regions, driven by improved procedural volume and favorable demographics [2] - In Q1 2025, Zimmer Biomet experienced strong growth due to continued procedure growth and solid momentum from new innovations, with large joints business growing 1.9%, 2.4%, and 4.9% for Knees, Hips, and S.E.T. respectively at constant exchange rates [3] Group 2: Expansion Strategy - Zimmer Biomet is implementing a four-pillar expansion strategy aimed at achieving a 5% weighted average market growth rate by 2027, which includes boosting patient awareness, enhancing safety, improving efficiency, and elevating outcomes [4][5] - The company has completed the acquisition of Paragon 28, which is expected to add 270 basis points to sales growth in 2025 [6] Group 3: Stock Performance - Over the past three months, ZBH shares have declined by 6.3%, while the industry has gained 1.5%, but strategic market expansion and new product launches are expected to help regain momentum [7] Group 4: Challenges - Industry-wide staffing shortages and supply chain issues are negatively impacting growth, compounded by geopolitical complications affecting raw material and labor costs [8] - The ongoing tariff issue is projected to impact 2025 operating profit by $60–$80 million, with full-year adjusted operating margins expected to decrease by 100–150 basis points compared to 2024 [9] - A significant portion of Zimmer Biomet's foreign revenues is affected by the strong U.S. dollar, with Q1 2025 net sales impacted by 1.2% due to foreign exchange rate changes [10]

思宇年度活动回顾： 首届全球眼科大会 | 首届全球骨科大会 | 首届全球心血管大会 即将召开： 2025年6月12日，首届全球医美科技大会 2025年7月17日，第二届全球医疗科技大会 2025年9月4-5日，第三届全球手术机器人大会 2025年4月1日， 捷迈邦美 Zimmer Biomet （纽约证券交易所代码：ZBH）宣布，其 RibFix Advantage 固定系统获得了 CE 认证 。据称，这是 首 个 获得 CE 认证的胸内肋骨固定系统。RibFix 提供胸腔镜下肋骨骨折的固定、稳定和融合，相比传统开放复位内固定术，它采用微创方法，可减少软 组织损伤。 # 产品信息 RibFix Advantage 固定系统 的 Advantage Bridge 在拧紧时能适应肋骨的解剖结构并自动贴合，以减少骨折。 系统提供微创植入选项，也可与开放手术方法结合使用，旨在支撑肋骨的自然弧度，以在骨折部位恢复稳定性。该系 统通 过双皮质固定肋骨，无需依赖螺纹与骨骼的啮合。 将钻孔导向器置于期望的位置，使器械的针脚抵住肋骨的上缘。通过钻孔导向器插入直径 4.00 毫米的钻头（麻花钻尖），在骨骼中钻一个 将导管穿过钻孔 ...

Core Insights - Zimmer Biomet Holdings, Inc. reported better-than-expected earnings for Q1, with adjusted EPS of $1.81, down from $1.94 a year ago, surpassing Street estimates of $1.77 [1] - The company achieved sales of $1.91 billion, reflecting a 1.1% increase on a reported basis and a 2.3% increase on a constant currency basis, nearly aligning with the consensus of $1.9 billion [1] Financial Guidance - For fiscal year 2025, the company expects adjusted EPS in the range of $7.90-$8.10, a decrease from the previous guidance of $8.15-$8.35, compared to consensus expectations of $8.19 [2] - Revenue growth for 2025 is projected at 5.7% – 8.2%, an increase from the earlier expectation of 1% – 3.5%, with a foreign currency exchange impact anticipated between 0.0% and 0.5% [3] Stock Performance and Analyst Ratings - Following the earnings announcement, Zimmer Biomet shares increased by 0.7%, trading at $91.08 [3] - Analysts have adjusted their price targets for Zimmer Biomet, with Baird lowering it from $130 to $115, Wells Fargo from $113 to $98, JP Morgan from $128 to $105, and others making similar reductions [8]

Group 1 - Zimmer Biomet's stock fell nearly 10% following the release of weak first quarter results and a significant reduction in full year earnings guidance [1] - The company is currently facing a range of factors impacting its business, leading to the reported weakness [1] - Narweena, an asset manager, focuses on identifying market dislocations due to poor understanding of long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities [1] Group 2 - Narweena's research emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] - The aging population, low population growth, and stagnating productivity growth are expected to create new investment opportunities, differing from past trends [1] - Many industries may experience stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] Group 3 - The economic landscape is increasingly characterized by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1] - Richard Durant, the leader of Narweena, holds degrees in engineering and finance, along with an MBA, and has passed the CFA exams [1]

Financial Performance - Net sales for the three-month period ended March 31, 2025, increased by 1.1% year-over-year, totaling $1,909.1 million, driven by market growth and new product introductions [109][114]. - Net earnings rose to $182.0 million in the same period, up from $172.4 million, primarily due to lower restructuring charges and increased net sales [110]. - The company expects revenue growth of 5.7% to 8.2% in 2025, influenced by the Paragon 28 acquisition and new product launches [111]. - Changes in volume and mix of product sales positively affected year-over-year sales by 2.2% during the three-month period ended March 31, 2025 [116]. - International net sales increased by 0.7% year-over-year, totaling $795.5 million, despite a negative impact of 3.0% from foreign currency exchange rates [119][114]. Costs and Expenses - Anticipated additional expenses related to tariffs in 2025 are estimated between $60 million to $80 million, impacting costs significantly in the second half of the year [112]. - The cost of products sold as a percentage of net sales increased to 28.8% from 27.1% due to higher manufacturing costs driven by inflation [121]. - Research and development expenses increased to 5.8% of net sales, reflecting higher spending on technology-based projects [122]. - Operating profit as a percentage of net sales decreased in the Americas to 51.8% from 53.9% due to higher manufacturing costs and bad debt charges [130][131]. - Operating profit in EMEA decreased due to higher manufacturing costs, partially offset by restructuring savings [132]. - Operating profit in Asia Pacific also decreased, attributed to higher manufacturing costs and increased bad debt-related charges [133]. Cash Flow and Financing - Cash flows from operations were $382.8 million for the three-month period ended March 31, 2025, up from $228.0 million in the prior year [136]. - Cash flows used in investing activities decreased to $106.0 million from $195.0 million year-over-year, reflecting lower investments in property and equipment [137]. - Cash flows provided by financing activities were $575.4 million, with senior notes issued for proceeds of $1,748.1 million [138]. - As of March 31, 2025, the company had $1,384.5 million in cash and cash equivalents, with $1.0 billion available to borrow under a credit agreement [134]. - Outstanding debt as of March 31, 2025, was $7,176.3 million, with $600.0 million classified as current debt maturing on January 15, 2026 [142]. Strategic Initiatives - The company completed the acquisition of Paragon 28 for approximately $1.4 billion, utilizing cash and borrowing [143]. - The 2025 Restructuring Plan is expected to incur pre-tax charges of approximately $85 million, aiming to reduce annual operating expenses by $95 million by the end of 2027 [146]. - The company declared a quarterly cash dividend of $0.24 per share and has $1,020.2 million remaining under a $2.0 billion share repurchase program [145]. Taxation - The effective tax rate for the three-month period ended March 31, 2025, was 20.3%, up from 19.7% in the prior year, influenced by the mix of earnings between U.S. and foreign locations [129].

Core Viewpoint - Zimmer Biomet Holdings, Inc. reported mixed results for Q1 2025, with adjusted EPS beating estimates but showing a year-over-year decline, while revenues exceeded expectations and showed slight growth [1][11]. Financial Performance - Adjusted EPS for Q1 2025 was $1.81, beating the Zacks Consensus Estimate by 2.3%, but down 6.7% year over year [1]. - Reported EPS was 91 cents, reflecting an 8.3% increase year over year [2]. - Q1 net sales reached $1.91 billion, a 1.1% increase year over year, and up 2.3% at constant exchange rates (CER), exceeding the Zacks Consensus Estimate by 1% [3]. Revenue Breakdown - U.S. sales totaled $1.11 billion, up 1.3% year over year, while international sales were $795.5 million, up 0.7% year over year and 3.7% at CER [4]. - Revenue by segment showed: - Knees: $792.9 million, up 1.9% at CER [5]. - Hips: $495.8 million, up 2.4% at CER [5]. - S.E.T.: $470.5 million, up 4.9% at CER [6]. - Technology & Data, Bone Cement and Surgical: $149.9 million, down 3.5% at CER [6]. Margin Analysis - Adjusted gross margin was 71.2%, a contraction of 168 basis points [7]. - Selling, general and administrative expenses rose 3.1% to $758.8 million, while R&D expenses increased 2.5% to $110.6 million [7]. - Adjusted operating margin contracted 254 basis points to 25.7% [7]. Cash Position - Cash and cash equivalents at the end of Q1 were $1.38 billion, up from $525.5 million at the end of Q4 2024 [8]. - Cumulative net cash from operating activities was $382.8 million, compared to $228 million in the previous year [8]. 2025 Outlook - The company expects reported revenue growth for 2025 to be between 5.7% and 8.2% year over year, an increase from earlier guidance of 1% to 3.5% [9]. - Adjusted EPS for the full year is projected to be in the range of $7.90 to $8.10 [9]. - The Zacks Consensus Estimate for 2025 adjusted EPS is $8.22 on revenues of $7.88 billion [10]. Strategic Insights - The company is gaining momentum in the U.S. Hips market, supported by new product offerings [13]. - The acquisition of Paragon 28 is expected to enhance innovation and expand the S.E.T. business into high-growth segments [13].

Core Insights - Zimmer Biomet reported $1.91 billion in revenue for the quarter ended March 2025, reflecting a year-over-year increase of 1.1% and an EPS of $1.81 compared to $1.94 a year ago, with revenue exceeding the Zacks Consensus Estimate of $1.89 billion by +0.88% and an EPS surprise of +2.84% [1] Revenue Performance - Net Sales for Knees in the United States were $459 million, slightly below the average estimate of $464.68 million, representing a year-over-year change of +0.2% [4] - Net Sales for Hips in the United States reached $264.30 million, surpassing the average estimate of $258.29 million, with a year-over-year increase of +3.7% [4] - International Net Sales for Hips were $231.50 million, slightly above the average estimate of $229.39 million, showing a year-over-year decline of -2% [4] - International Net Sales for Knees were $333.90 million, exceeding the average estimate of $328.76 million, with a year-over-year increase of +1.2% [4] - Total International Net Sales amounted to $795.50 million, surpassing the estimated $783.50 million, reflecting a +0.7% change year-over-year [4] - Total Net Sales in the United States were $1.11 billion, slightly above the estimated $1.10 billion, indicating a +1.3% year-over-year change [4] - Overall Net Sales for Knees were $792.90 million, exceeding the average estimate of $787.14 million, with a year-over-year increase of +0.6% [4] - Net Sales for Other products were $149.90 million, below the average estimate of $152.71 million, representing a year-over-year decline of -4.7% [4] - Net Sales for S.E.T. reached $470.50 million, surpassing the average estimate of $460.26 million, with a year-over-year increase of +4% [4] - Net Sales for Hips totaled $495.80 million, exceeding the average estimate of $488.84 million, reflecting a +0.9% year-over-year change [4] Stock Performance - Zimmer's shares have returned -4.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.4% change, and the stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Company Performance - Zimmer Biomet reported quarterly earnings of $1.81 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, but down from $1.94 per share a year ago, representing an earnings surprise of 2.84% [1] - The company posted revenues of $1.91 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.88% and showing a slight increase from $1.89 billion year-over-year [2] - Over the last four quarters, Zimmer has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - The immediate price movement of Zimmer's stock will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - Zimmer shares have declined approximately 3.1% since the beginning of the year, slightly outperforming the S&P 500's decline of 3.3% [3] - The current consensus EPS estimate for the upcoming quarter is $2.02 on revenues of $1.98 billion, and for the current fiscal year, it is $8.22 on revenues of $7.88 billion [7] Industry Context - The Medical - Products industry, to which Zimmer belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Zimmer's stock performance [5][6]