Zimmer Biomet (ZBH) came out with quarterly earnings of $2.01 per share, beating the Zacks Consensus Estimate of $1.98 per share. This compares to earnings of $1.82 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.52%. A quarter ago, it was expected that this orthopedic device maker would post earnings of $1.87 per share when it actually produced earnings of $1.94, delivering a surprise of 3.74%. Over the last four quarters, ...

Financial Performance - Second quarter net sales of $1.942 billion increased 3.9% and 5.6% on a constant currency basis[1] - Net sales for Q2 2024 increased to $1,942.0 million, up 3.9% from $1,869.6 million in Q2 2023[20] - Net sales for the first six months of 2024 reached $3,831.2 million, a 3.5% increase from $3,700.6 million in the same period of 2023[22] - Total constant currency net sales growth for the six months ended June 30, 2024, was 5.6%, with international growth at 8.5% and U.S. growth at 3.5%[25] - Net sales for the six months ended June 30, 2024, were $3,831.2 million, with adjusted gross profit of $2,769.1 million[34] Earnings and Profitability - Second quarter diluted earnings per share were $1.18; adjusted diluted earnings per share were $2.01[1] - Net earnings for the second quarter were $242.8 million, or $415.0 million on an adjusted basis[1] - Net earnings for Q2 2024 rose to $242.8 million, compared to $209.6 million in Q2 2023[20] - Operating profit for Q2 2024 grew to $351.3 million, up from $329.6 million in Q2 2023[20] - Net earnings for the first six months of 2024 were $415.2 million, down from $442.1 million in the same period of 2023[22] - Net earnings for the six months ended June 30, 2024, were $415.9 million, compared to $442.6 million in 2023[24] - Adjusted net earnings for the three months ended June 30, 2024, were $415.0 million, compared to $382.8 million in 2023[27][28] - Adjusted diluted earnings per share for the three months ended June 30, 2024, were $2.01, up from $1.82 in 2023[27][28] - Net Earnings for the six months ended June 30, 2024, were $415.2 million, with adjusted net earnings of $814.7 million[29] - Diluted earnings per common share for the six months ended June 30, 2024, were $2.01, with adjusted diluted earnings per share of $3.95[29] - Adjusted operating profit for Q2 2024 increased to $552.6 million, up from $514.3 million in Q2 2023[35] - Adjusted operating profit margin for Q2 2024 improved to 28.5%, compared to 27.5% in Q2 2023[36] - Operating profit margin for Q2 2024 was 18.1%, up from 17.6% in Q2 2023[36] Regional and Product Sales - United States net sales for the second quarter were $1,106.2 million, a 3.5% increase[4] - International net sales for the second quarter were $835.8 million, a 4.4% increase (8.5% on a constant currency basis)[4] - Knees product category sales totaled $801.1 million, a 3.9% increase (5.5% on a constant currency basis)[4] - Hips product category sales totaled $506.5 million, a 0.4% increase (2.8% on a constant currency basis)[4] - Knees product category showed a constant currency growth of 5.5%, with international growth at 11.5% and U.S. growth at 0.8%[25] - Hips product category had a constant currency growth of 2.8%, with international growth at 3.7% and U.S. growth at 1.8%[25] - S.E.T. product category grew by 7.3% in constant currency, while the Other category grew by 11.3%[25] Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, stood at $420.1 million, slightly up from $415.8 million at the end of 2023[23] - Net cash provided by operating activities for the six months ended June 30, 2024, was $597.4 million, down from $655.6 million in 2023[24] - Net cash used in investing activities for the six months ended June 30, 2024, was $442.0 million, compared to $392.5 million in 2023[24] - Cash and cash equivalents at the end of June 30, 2024, were $420.1 million, up from $319.8 million in 2023[24] - Net cash provided by operating activities for the six months ended June 30, 2024, was $597.4 million, with free cash flow of $342.4 million[33] - Cash and cash equivalents as of June 30, 2024, were $420.1 million, slightly lower than $415.8 million at the end of 2023[38] Debt and Assets - Total assets as of June 30, 2024, were $21,520.0 million, compared to $21,496.9 million at the end of 2023[23] - Long-term debt decreased to $3,956.7 million as of June 30, 2024, from $4,867.9 million at the end of 2023[23] - Net debt as of June 30, 2024, stood at $5,414.6 million, slightly higher than $5,352.1 million at the end of 2023[38] Expenses and Costs - Research and development expenses for Q2 2024 were $109.4 million, down from $118.1 million in Q2 2023[20] - Restructuring and other cost reduction initiatives for Q2 2024 increased to $41.5 million, up from $24.4 million in Q2 2023[20] - Intangible asset amortization for the six months ended June 30, 2024, was $286.1 million[29] - Restructuring and other cost reduction initiatives for the six months ended June 30, 2024, amounted to $165.9 million[29] - European Union Medical Device Regulation costs for the six months ended June 30, 2024, were $13.4 million[29] - Inventory and manufacturing-related charges for the six months ended June 30, 2024, were $3.8 million[29] - Other certain tax adjustments for the six months ended June 30, 2024, resulted in a $20.5 million benefit[29] - Intangible asset amortization for Q2 2024 was $144.0 million, up from $138.2 million in Q2 2023[35] - Restructuring and cost reduction initiatives cost $41.5 million in Q2 2024, compared to $24.4 million in Q2 2023[35] - European Union Medical Device Regulation costs decreased to $7.6 million in Q2 2024 from $15.2 million in Q2 2023[35] - Litigation charges in Q2 2024 were minimal at $0.1 million, compared to a credit of $3.8 million in Q2 2023[35] Guidance and Forecasts - The company updated 2024 reported revenue guidance to 4.0% - 5.0% due to currency expectations[7] - The company reaffirmed 2024 constant currency revenue growth guidance of 5.0% - 6.0%[7] - Adjusted diluted EPS guidance for 2024 remains unchanged at $8.00 - $8.15[7] Gross Margin and Profitability Metrics - Gross margin for the six months ended June 30, 2024, was 64.7%, with an adjusted gross margin of 72.3%[34] - Adjusted effective tax rate for Q2 2024 was 18.2%, down from 19.6% in the same period last year[37]

Acquisition Expands Hip Portfolio with Artificial Intelligence-Driven Surgical Guidance System WARSAW, Ind., Aug. 7, 2024 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that it signed a definitive agreement to acquire OrthoGrid Systems, Inc., (OrthoGrid) a privately-held medical technology company focused on artificial intelligence (AI)-driven surgical guidance systems for total hip replacement. The acquisition includes OrthoGrid's AI-po ...

Core Insights - Zimmer Biomet Holdings, Inc. reported second quarter net sales of $1.942 billion, reflecting a 3.9% increase year-over-year and a 5.6% increase on a constant currency basis [1] - The company achieved diluted earnings per share of $1.18 and adjusted diluted earnings per share of $2.01 for the second quarter [1] - The company updated its 2024 reported revenue guidance due to currency expectations while reaffirming its constant currency revenue growth and adjusted earnings per share guidance [1][7] Financial Performance - Net earnings for the second quarter were $242.8 million, with adjusted net earnings of $415.0 million [1][15] - For the six months ended June 30, 2024, net sales totaled $3.831 billion, a 3.5% increase compared to the same period in 2023 [16] - The company reported operating profit of $351.3 million for the second quarter, up from $329.6 million in the prior year [15] Geographic and Product Category Sales - In the United States, net sales were $1.106 billion, a 3.5% increase, while international sales reached $835.8 million, a 4.4% increase [5] - The knees product category saw total sales of $801.1 million, with U.S. sales at $441.2 million and international sales at $359.9 million [5] - The hips product category reported total sales of $506.5 million, with U.S. sales at $259.0 million and international sales at $247.5 million [5] Financial Guidance - The updated guidance for 2024 reported revenue change is now projected at 4.0% - 5.0%, down from the previous 4.5% - 5.5% [7] - The constant currency revenue change guidance remains at 5.0% - 6.0%, and adjusted diluted EPS guidance is reaffirmed at $8.00 - $8.15 [7] Management Commentary - The CEO highlighted strong Q2 performance driven by customer demand for diversified products and the strength of the international business [3] - The company is making progress against key priorities, including operational excellence and innovation [3]

Wall Street analysts forecast that Zimmer Biomet (ZBH) will report quarterly earnings of $1.98 per share in its upcoming release, pointing to a year-over-year increase of 8.8%. It is anticipated that revenues will amount to $1.94 billion, exhibiting an increase of 3.7% compared to the year-ago quarter. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of ...

Core Viewpoint - Zimmer Biomet Holdings, Inc. is set to report its second-quarter 2024 results on August 7, with expectations of revenue growth and improved earnings per share compared to the previous year [1][2]. Q2 Estimates - The Zacks Consensus Estimate for second-quarter 2024 revenues is $1.94 billion, reflecting a 3.7% increase from the prior year [2]. - The expected earnings per share for the second quarter is $1.98, indicating an 8.8% improvement from the year-ago adjusted earnings [2]. Estimate Revision Trend Ahead of Earnings - The earnings estimate for Zimmer Biomet has remained unchanged at $1.98 per share over the past 60 days, indicating stability in expectations leading up to the earnings announcement [3]. Factors at Play - The company faces supply challenges due to geopolitical issues and healthcare labor shortages, which have impacted margins. However, it anticipates these challenges to ease, supported by a strong product pipeline and effective growth strategies [4]. - Procedure volume improvement in the legacy business and strong performance in the Knees and Hip segments are expected to drive revenue growth [5]. Business Segment Performance - **Hips Business**: Anticipated recovery in procedure volume due to strategic product launches, including the FDA-approved triple taper hip stem Z1 and advancements in navigation technology. Projected growth of 2.5% year-over-year in the second quarter [6][7]. - **Knees Business**: Expected strong recovery in elective procedures and market penetration of the cementless knee system, with projected revenue growth of 2.8% year-over-year [8][10]. - **S.E.T. Business**: Anticipated strong performance in craniomaxillofacial and sports medicine areas, with projected year-over-year revenue growth of 8%. However, there may be pressures from reimbursement challenges and supply issues [11][12]. Earnings ESP and Zacks Rank - Zimmer Biomet has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating a lower likelihood of beating earnings estimates compared to other stocks with higher ranks [13].

Individuals in the U.S. and Canada who wish to dial into the conference call may do so by dialing (888) 204- 4368 and using conference ID 5103691. International callers should dial +1 (323) 994-2093 and use conference ID 5103691. SOURCE Zimmer Biomet Holdings, Inc. Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital an ...

PhonlamaiPhoto Zimmer Biomet's (NYSE:ZBH) share price has been under considerable pressure over the past 3 months, potentially due to a combination of soft growth, poor cash flows and higher interest rates. Some of these issues are expected to begin correcting later in the year though. I previously suggested that concerns over the impact of weight loss drugs was misplaced, with reduced obesity rates likely to provide a demand boost in the near term. The rise of robotic surgeries and Zimmer's evolving produc ...

WARSAW, Ind., June 20, 2024 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that Devdatt "Dev" Kurdikar, President, Chief Executive Officer and a member of the board of directors of Embecta Corp. (embecta), has been appointed to the Zimmer Biomet Board, effective immediately. embecta (Nasdaq: EMBC), formerly part of Becton, Dickinson and Company (BD), is one of the largest pure-play diabetes management companies in the world. "We are plea ...

Zimmer Biomet (ZBH) and RevelAi Health accepted a multi-year co-marketing agreement to commercialize generative artificial intelligence (AI)-powered engagement solutions, which, in turn, should help the advancement of value-based orthopedic care and health equity. More on the Partnership About RevelAi Health It offers a unique patient care management system, managing text messages and clinician-guided voice agents to enhance patient engagement. Industry Prospects Simultaneously, the global value-based healt ...