Core Insights - Zimmer Biomet Holdings, Inc. is set to launch the Z1 Femoral Hip System for total hip arthroplasty at the 2024 AAHKS annual meeting, showcasing its advanced hip portfolio and enabling technologies [1][4] Group 1: Product Launch and Features - The Z1 Femoral Hip System is a triple-taper femoral system designed to enhance stability and efficiency in total hip arthroplasty, complementing the G7 Acetabular System [1][2] - The Z1 System offers collared and collarless options for cementless applications and includes three distinct neck options to accommodate various patient anatomies [2] - The system is designed to minimize the instrument footprint, thereby reducing processing and sterilization burdens for surgical teams [2] Group 2: Clinical Feedback and Innovations - Initial user feedback from surgeons indicates that the Z1 System is intuitive and versatile, enhancing the surgical experience compared to earlier models [3] - Zimmer Biomet has expanded its hip portfolio through strategic acquisitions, including OrthoGrid Systems, which provides AI-powered surgical assistance applications [3] - The OrthoGrid Hip AI technology offers real-time intra-operative guidance for optimal surgical outcomes, further enhancing the capabilities of the Z1 System [3] Group 3: Upcoming Presentations and Studies - At the AAHKS meeting, Zimmer Biomet will present data from three clinical studies related to hip arthroplasty, focusing on metal ion levels, clinical outcomes, and quality of life correlations [4]

Zimmer Biomet (ZBH) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on October 30, 2024, might help the stock move higher if these key numbers are better t ...

Core Viewpoint - Zimmer Biomet Holdings, Inc. (ZBH) is expected to report strong growth in Q3 2024, driven by performance in its business segments, despite a slight downward revision in earnings estimates [1][3][4]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for Q3 2024 revenues is $1.81 billion, reflecting a 3.3% increase from the previous year [2]. - The earnings estimate is set at $1.75 per share, indicating a 6.1% improvement year-over-year [2]. - However, the earnings estimate has been revised down by 1.1% in the past 30 days [3]. Group 2: Business Segment Performance - The Hip business is anticipated to show growth due to new product introductions, including the surgical impactor HAMMR and the acquisition of OrthoGrid Systems, which enhances its AI capabilities [5][6]. - The company expects to launch a second generation of hip posterior robotics, contributing to revenue growth in this category [6]. - In the Knees business, despite facing supply challenges, the company achieved a 5% year-over-year growth in the previous quarter, which is expected to continue [7]. Group 3: Strategic Developments - Zimmer Biomet plans to launch two different ROSA systems for knees in the next three to eight quarters, which may positively impact Q3 performance [8]. - The S.E.T business has shown consistent growth, with mid-single digits growth in key areas, and this trend is expected to persist [9]. Group 4: Earnings ESP and Zacks Rank - Zimmer Biomet has an Earnings ESP of -1.65%, indicating a lower chance of beating estimates [10]. - The company currently holds a Zacks Rank of 4 (Sell), which is less favorable for earnings surprises [10].

Group 1 - Zimmer Biomet Holdings, Inc. will host its third quarter earnings conference call on October 30, 2024, at 8:30 a.m. ET, with a news release available at 6:30 a.m. ET on the same day [1] - The conference call can be accessed via Zimmer Biomet's Investor Relations website and will be available for replay after the call [1] - U.S. and Canada participants can join the call by dialing (888) 204-4368, while international callers should use +1 (323) 994-2093, both requiring conference ID 5103691 [2] Group 2 - Zimmer Biomet is recognized as a global leader in medical technology, focusing on maximizing mobility and improving health through innovative products and integrated digital and robotic technologies [3] - The company has over 90 years of experience and is committed to delivering high-quality solutions to patients and providers, emphasizing a culture of evolution and innovation [4] - Zimmer Biomet operates in over 25 countries and has sales in more than 100 countries, showcasing its extensive global reach [5]

Zimmer Biomet's (ZBH) strategic efforts to drive growth in the Knee business are anchored by four meaningful pillars. The stabilization of the global musculoskeletal market is encouraging for future growth. By expanding its portfolio to include upper and lower joints, the company is enhancing its presence in emerging markets. Meanwhile, a debt-burdened balance sheet and adverse currency movements remain concerns for ZBH's operations. In the past year, this Zacks Rank #3 (Hold) stock has dropped 2.7% in valu ...

Zimmer Biomet's (ZBH) strategic product launches and stabilizing market trends bolster our confidence in this stock. However, factors like macroeconomic uncertainties put pressure on the bottom line. The stock carries a Zacks Rank #3 (Hold). Zimmer Biomet has been witnessing strong market share gains within the reconstructive Knees and Hips businesses in key geographies despite macroeconomic challenges. According to the company, procedure growth continues successfully, aided by no meaningful impact from sta ...

Zimmer Biomet Holdings, Inc. (ZBH) recently announced the signing of a definitive agreement to acquire OrthoGrid Systems, Inc., a privately-held medical technology company focused on artificial intelligence (AI)- driven surgical guidance systems for total hip replacement. The acquisition comprises more than 40 patents, two additional orthopedic applications with FDA clearance, and Hip AI, OrthoGrid's AI-powered, fluoroscopy-based surgical support platform. This acquisition is set to expand Zimmer Biomet's h ...

Financial Performance - Net sales increased by 3.9% to $1,942.0 million in the three months ended June 30, 2024, and by 3.5% to $3,831.2 million in the six months ended June 30, 2024, compared to the same prior year periods [93]. - Net earnings for the three months ended June 30, 2024, were $242.8 million, up from $209.6 million in the same period last year, while earnings for the six months decreased to $415.2 million from $442.1 million due to restructuring charges [93]. - The company expects mid-single-digit revenue growth in 2024, with a projected negative impact of approximately 1.0% from foreign currency exchange rates [94]. - Sales in the United States grew by 3.5% in the three months and 3.6% in the six months ended June 30, 2024, driven by market growth and sales of the ROSA® Robot [102]. - International net sales increased by 4.4% and 3.5% in the three and six months ended June 30, 2024, respectively, despite a negative impact of 4.1% and 3.5% from foreign currency exchange rates [102]. - Demand trends positively affected sales by 4.8% and 4.5% in the three and six months ended June 30, 2024, respectively, due to market growth and new product introductions [99]. - Global selling prices contributed positively by 0.8% and 0.5% to year-over-year sales in the three and six months ended June 30, 2024, respectively [100]. Expenses and Costs - Cost of products sold as a percentage of net sales increased to 28.5% in the three months ended June 30, 2024, from 28.1% in the same period last year, primarily due to higher manufacturing costs [104]. - Research and development expenses decreased to 5.6% of net sales in the three months ended June 30, 2024, down from 6.3% in the same period last year, due to lower spending on EU MDR compliance [105]. - Selling, general and administrative expenses increased in amount but decreased as a percentage of net sales to 38.0% in the three months ended June 30, 2024, from 38.8% in the same period last year [106]. Restructuring and Charges - In the three and six-month periods ended June 30, 2024, the company recognized restructuring expenses of $41.5 million and $165.9 million, respectively, compared to $24.4 million and $66.3 million in the same periods of 2023 [107]. - The 2023 Restructuring Plan is expected to incur pre-tax charges of $120 million to $135 million by the end of 2025, with approximately $107 million incurred through June 30, 2024 [127]. - The company anticipates reducing gross annual pre-tax operating expenses by $175 million to $200 million relative to 2023 baseline expenses by the end of 2025 as benefits from the 2023 Restructuring Plan are realized [127]. - The 2021 Restructuring Plan is projected to result in total pre-tax restructuring charges of approximately $180 million by the end of 2024, with about $170 million incurred through June 30, 2024 [127]. - The 2019 Restructuring Plan is expected to incur total pre-tax restructuring charges of approximately $370 million by the end of 2025, with around $341 million incurred through June 30, 2024 [127]. - The company expects to achieve approximately $190 million in gross annual pre-tax operating expense reductions relative to the 2021 baseline expenses by the end of 2024 [127]. - The full benefits of the 2019 Restructuring Plan will not be realized until the closure of a manufacturing facility, expected to occur in 2025 [127]. Tax and Cash Flow - The effective tax rate for the three and six-month periods ended June 30, 2024, was 19.6%, a decrease from 24.2% and 21.5% in the same periods of 2023, primarily due to a favorable mix of earnings between U.S. and foreign locations [111]. - Cash flows provided by operating activities were $597.4 million in the six-month period ended June 30, 2024, down from $655.6 million in the same prior year period, attributed to higher bonus, income tax, and restructuring-related payments [119]. - As of June 30, 2024, the company had $420.1 million in cash and cash equivalents, with an additional $1.0 billion available to borrow under its 2024 364-Day Credit Agreement [118]. Share Repurchase and Profitability - The company repurchased approximately 0.9 million shares for $95.4 million in the three-month period ended June 30, 2024, with $1,904.6 million remaining authorized under the new $2.0 billion share repurchase program [126]. - In the Americas, operating profit increased in the three and six-month periods ended June 30, 2024, driven by higher net sales from market growth and new product introductions [115]. - In EMEA, operating profit and operating profit as a percentage of net sales increased in the three and six-month periods ended June 30, 2024, due to higher net sales and lower expenses from the 2023 Restructuring Plan [116]. - In Asia Pacific, operating profit increased despite a decline in net sales due to foreign currency exchange rate changes, with higher hedge gains partially offsetting the negative impact [117]. Litigation and Future Obligations - Estimated total liabilities for litigation matters stood at $208.2 million as of June 30, 2024, with potential future payments ranging from $0 to approximately $395 million [129]. - The company is involved in various litigation matters, which may result in charges exceeding current estimates upon resolution [129]. - Future payments related to development and distribution contracts may be significant but are uncertain and have not been recognized on the balance sheets [129]. - The company is actively disputing proposed tax adjustments from the IRS for multiple years, which may significantly impact future operating cash flows [128].

Zimmer Biomet Holdings, Inc. (ZBH) posted second-quarter 2024 adjusted earnings per share (EPS) of $2.01, exceeding the Zacks Consensus Estimate by 1.5%. The adjusted figure increased 10.4% year over year. The quarter's adjustments included certain amortization, restructuring and other cost reduction initiatives and European Union Medical Device Regulation-related charges, among others. On a reported basis, the company registered earnings of $1.18 per share, which reflected an 18% improvement from the year- ...

Zimmer Biomet (ZBH) reported $1.94 billion in revenue for the quarter ended June 2024, representing a yearover-year increase of 3.9%. EPS of $2.01 for the same period compares to $1.82 a year ago. The reported revenue represents a surprise of +0.19% over the Zacks Consensus Estimate of $1.94 billion. With the consensus EPS estimate being $1.98, the EPS surprise was +1.52%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...