Zimmer Biomet (ZBH) came out with quarterly earnings of $2.31 per share, beating the Zacks Consensus Estimate of $2.30 per share. This compares to earnings of $2.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.43%. A quarter ago, it was expected that this orthopedic device maker would post earnings of $1.75 per share when it actually produced earnings of $1.74, delivering a surprise of -0.57%.Over the last four quarters, ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of Zimmer Biomet's financial performance for Q4 and full-year 2024, strategic developments, and 2025 financial guidance [Fourth Quarter and Full-Year 2024 Financial Performance](index=1&type=section&id=Fourth%20Quarter%20and%20Full-Year%202024%20Financial%20Performance) Zimmer Biomet reported strong financial results for Q4 and full-year 2024, meeting its financial guidance, with net sales increasing across both periods and adjusted diluted EPS also seeing healthy increases Fourth Quarter 2024 Financial Highlights | Metric | Reported Value | YoY Change (Reported) | YoY Change (Constant Currency) | | :----- | :------------- | :-------------------- | :----------------------------- | | Net Sales | $2.023 billion | 4.3% | 4.9% | | Net Earnings | $239.4 million | - | - | | Adjusted Net Earnings | $462.4 million | - | - | | Diluted EPS | $1.20 | - | - | | Adjusted Diluted EPS | $2.31 | - | - | Full-Year 2024 Financial Highlights | Metric | Reported Value | YoY Change (Reported) | YoY Change (Constant Currency) | | :----- | :------------- | :-------------------- | :----------------------------- | | Net Sales | $7.679 billion | 3.8% | 4.8% | | Net Earnings | $903.8 million | - | - | | Adjusted Net Earnings | $1.630 billion | - | - | | Diluted EPS | $4.43 | - | - | | Adjusted Diluted EPS | $8.00 | - | - | [Recent Strategic Developments and Product Innovations](index=2&type=section&id=Recent%20Strategic%20Developments%20and%20Product%20Innovations) Zimmer Biomet is actively diversifying its portfolio into higher-growth segments, highlighted by the agreement to acquire Paragon 28, which will significantly expand its S.E.T. business, alongside key regulatory approvals for innovative knee and shoulder systems and a direct-to-patient initiative with Arnold Schwarzenegger - Announced definitive agreement to acquire Paragon 28, Inc., a leading medical device company focused on the foot and ankle orthopedic segment, expanding into the **~$5 billion market** and aiming to make the S.E.T. business larger and faster-growing than the Hip business[5](index=5&type=chunk)[7](index=7&type=chunk) - Received U.S. FDA Premarket Approval (PMA) for the **Oxford® Cementless Partial Knee**, making it the only FDA-approved cementless partial knee implant in the U.S. after extensive international clinical experience[7](index=7&type=chunk) - Announced FDA 510(k) clearance for the **OsseoFit™ Stemless Shoulder System** for total shoulder replacement, designed to optimize anatomical fit and bone preservation[7](index=7&type=chunk) - Received CE Mark Certification for the **Persona® Revision Knee System**, enhancing personalized solutions for revision knee arthroplasty[7](index=7&type=chunk) - Welcomed Arnold Schwarzenegger as Chief Movement Officer to motivate and support individuals in increasing mobility and maintaining joint health, supporting Direct-to-Patient efforts[7](index=7&type=chunk) [Full-Year 2025 Financial Guidance](index=5&type=section&id=Full-Year%202025%20Financial%20Guidance) Zimmer Biomet provided its financial outlook for the full-year 2025, projecting revenue growth and adjusted diluted EPS within specific ranges, taking into account anticipated foreign currency exchange impacts Projected Year Ending December 31, 2025 Financial Guidance | Metric | Range | | :-------------------------- | :------------ | | Reported Revenue Change | 1.0% - 3.5% | | Foreign Currency Exchange Impact | (2.0)% - (1.5)% | | Constant Currency Revenue Change | 3.0% - 5.0% | | Adjusted Diluted EPS | $8.15 - $8.35 | [Company Overview](index=5&type=section&id=Company%20Overview) This section provides an overview of Zimmer Biomet's global medical technology leadership, its innovative approach, and key investor information [About Zimmer Biomet](index=5&type=section&id=About%20Zimmer%20Biomet) Zimmer Biomet is a global medical technology leader with over 90 years of experience, offering a comprehensive portfolio focused on maximizing mobility and improving health, integrating innovative products with digital and robotic technologies leveraging data and AI to enhance patient experience - Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health[16](index=16&type=chunk) - The company transforms the patient experience through innovative products and integrated digital and robotic technologies that leverage data, data analytics, and artificial intelligence[16](index=16&type=chunk) - With over **90 years of trusted leadership**, Zimmer Biomet operates in **25+ countries** and has sales in **100+ countries**[17](index=17&type=chunk)[18](index=18&type=chunk) [Investor Information](index=5&type=section&id=Investor%20Information) Zimmer Biomet provides investor information through its dedicated Investor Relations website, which is used for disclosing material non-public information and complying with Regulation FD, and also hosts investor conference calls with replays available online - The company's Investor Relations website (https://investor.zimmerbiomet.com) is a primary channel for disclosing material, non-public information and complying with Regulation FD[15](index=15&type=chunk)[20](index=20&type=chunk) - A conference call for Q4 and full-year 2024 results was scheduled for February 6, 2025, with an audio webcast accessible via the Investor Relations website[15](index=15&type=chunk) [Financial Review (GAAP)](index=11&type=section&id=Financial%20Review%20(GAAP)) This section presents Zimmer Biomet's GAAP financial statements, including consolidated statements of earnings, balance sheets, and cash flows for the specified periods [Consolidated Statements of Earnings](index=11&type=section&id=Consolidated%20Statements%20of%20Earnings) The Consolidated Statements of Earnings provide a detailed breakdown of Zimmer Biomet's revenue, expenses, and net earnings for both the fourth quarter and the full year of 2024, compared to 2023, on a GAAP basis [Three Months Ended December 31, 2024 and 2023](index=11&type=section&id=Three%20Months%20Ended%20December%2031%2C%202024%20and%202023) For the fourth quarter of 2024, Zimmer Biomet reported an increase in net sales but a decrease in net earnings compared to the prior year, primarily due to higher operating expenses and a significantly higher provision for income taxes Consolidated Statements of Earnings (Q4 2024 vs. Q4 2023, in millions USD) | Metric | Q4 2024 | Q4 2023 | | :------------------------------------------ | :-------------------- | :-------------------- | | Net Sales | $2,023.2 | $1,940.1 | | Operating Profit | $389.0 | $354.2 | | Earnings before income taxes | $289.0 | $284.4 | | Provision (benefit) for income taxes | $49.0 | $(135.2) | | Net Earnings of Zimmer Biomet Holdings, Inc. | $239.4 | $419.2 | | Diluted EPS | $1.20 | $2.01 | [Years Ended December 31, 2024 and 2023](index=12&type=section&id=Years%20Ended%20December%2031%2C%202024%20and%202023) For the full year 2024, Zimmer Biomet achieved higher net sales and operating profit compared to 2023, but net earnings decreased due to a substantial increase in the provision for income taxes Consolidated Statements of Earnings (Full-Year 2024 vs. Full-Year 2023, in millions USD) | Metric | FY 2024 | FY 2023 | | :------------------------------------------ | :-------------------- | :-------------------- | | Net Sales | $7,678.6 | $7,394.2 | | Operating Profit | $1,285.7 | $1,277.7 | | Earnings before income taxes | $1,036.6 | $1,067.3 | | Provision for income taxes | $131.4 | $42.2 | | Net Earnings of Zimmer Biomet Holdings, Inc. | $903.8 | $1,024.0 | | Diluted EPS | $4.43 | $4.88 | [Condensed Consolidated Balance Sheets](index=13&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2024, Zimmer Biomet's balance sheet shows a slight decrease in total assets compared to the prior year, with an increase in cash and cash equivalents, while total liabilities also decreased, leading to a stable stockholders' equity Condensed Consolidated Balance Sheets (as of Dec 31, 2024 vs. 2023, in millions USD) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :-------------------------------- | :------------------------- | :------------------------- | | Cash and cash equivalents | $525.5 | $415.8 | | Total current assets | $4,671.5 | $4,609.5 | | Goodwill | $8,951.1 | $8,818.5 | | Total Assets | $21,365.3 | $21,496.9 | | Current liabilities | $1,587.9 | $1,957.5 | | Long-term debt | $5,341.6 | $4,867.9 | | Total Liabilities and Stockholders' Equity | $21,365.3 | $21,496.9 | [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the full year 2024, Zimmer Biomet's net cash provided by operating activities slightly decreased, while net cash used in investing activities increased, and net cash used in financing activities significantly decreased, primarily due to higher proceeds from senior notes and lower net payments on revolving facilities, despite substantial common stock repurchases Consolidated Statements of Cash Flows (Full-Year 2024 vs. Full-Year 2023, in millions USD) | Metric | FY 2024 | FY 2023 | | :------------------------------------------ | :-------------------- | :-------------------- | | Net cash provided by operating activities | $1,499.4 | $1,581.6 | | Net cash used in investing activities | $(888.1) | $(778.9) | | Net cash used in financing activities | $(484.5) | $(763.5) | | Change in cash and cash equivalents | $109.7 | $40.1 | | Cash and cash equivalents, end of period | $525.5 | $415.8 | - Proceeds from senior notes increased significantly to **$1,436.3 million** in 2024 from $499.8 million in 2023[42](index=42&type=chunk) - Repurchase of common stock increased to **$868.0 million** in 2024 from $692.2 million in 2023[42](index=42&type=chunk) [Sales Performance by Geography and Product Category](index=3&type=section&id=Sales%20Performance%20by%20Geography%20and%20Product%20Category) This section details Zimmer Biomet's net sales performance, broken down by geographic region and specific product categories for both the fourth quarter and full year 2024 [Three Months Ended December 31, 2024](index=3&type=section&id=Three%20Months%20Ended%20December%2031%2C%202024) In Q4 2024, Zimmer Biomet's net sales grew across both the United States and International segments, with International sales showing stronger constant currency growth, while the S.E.T. category led product growth and Technology & Data, Bone Cement and Surgical experienced a decline Net Sales - Three Months Ended December 31, 2024 (in millions USD) | Category | Net Sales | % Change (Reported) | % Change (Constant Currency) | | :----------------------------------- | :-------- | :------------------ | :--------------------------- | | **Geographic Results** | | | | | United States | $1,181.2 | 4.7% | 4.7% | | International | $842.0 | 3.7% | 5.2% | | Total | $2,023.2 | 4.3% | 4.9% | | **Product Categories** | | | | | Knees Total | $839.2 | 5.1% | 5.6% | | Hips Total | $520.0 | 3.0% | 4.0% | | S.E.T. | $489.4 | 8.0% | 8.4% | | Technology & Data, Bone Cement and Surgical | $174.6 | (4.9)% | (4.3)% | [Year Ended December 31, 2024](index=4&type=section&id=Year%20Ended%20December%2031%2C%202024) For the full year 2024, Zimmer Biomet's total net sales increased, driven by growth in both U.S. and International markets, with International showing stronger constant currency growth, while the S.E.T. category was the strongest performer and Hips showed the slowest growth Net Sales - Year Ended December 31, 2024 (in millions USD) | Category | Net Sales | % Change (Reported) | % Change (Constant Currency) | | :----------------------------------- | :-------- | :------------------ | :--------------------------- | | **Geographic Results** | | | | | United States | $4,439.0 | 3.5% | 3.5% | | International | $3,239.6 | 4.3% | 6.6% | | Total | $7,678.6 | 3.8% | 4.8% | | **Product Categories** | | | | | Knees Total | $3,173.5 | 4.4% | 5.2% | | Hips Total | $1,999.1 | 1.6% | 3.0% | | S.E.T. | $1,865.7 | 6.5% | 7.1% | | Technology & Data, Bone Cement and Surgical | $640.3 | 0.7% | 1.9% | [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains Zimmer Biomet's use of non-GAAP financial measures and provides detailed reconciliations to their GAAP equivalents for various financial metrics [Note on Non-GAAP Financial Measures](index=6&type=section&id=Note%20on%20Non-GAAP%20Financial%20Measures) Zimmer Biomet uses non-GAAP financial measures, such as constant currency sales, adjusted net earnings, adjusted diluted EPS, and free cash flow, to provide investors with additional insights into the company's performance, as these measures exclude certain items that management believes do not reflect the fundamentals of ongoing operations, allowing for better period-to-period comparisons and trend analysis - Non-GAAP financial measures are used to supplement GAAP measures, providing meaningful incremental information to investors by excluding certain items that can cause dramatic changes in reported income but do not impact operational fundamentals[22](index=22&type=chunk)[28](index=28&type=chunk) - Constant currency percentage changes exclude the effects of foreign currency exchange rates, calculated by translating current and prior-period sales at predetermined exchange rates[23](index=23&type=chunk) - Adjusted net earnings and diluted EPS exclude the effects of certain detailed items, as reconciled in the press release[24](index=24&type=chunk) - Free cash flow is computed by deducting additions to instruments and other property, plant and equipment from net cash provided by operating activities[25](index=25&type=chunk) [Reconciliation of Net Sales % Change to Constant Currency % Change](index=15&type=section&id=Reconciliation%20of%20Net%20Sales%20%25%20Change%20to%20Constant%20Currency%20%25%20Change) These reconciliations illustrate the impact of foreign currency exchange rates on net sales growth, providing a clearer view of underlying business performance by showing sales changes on a constant currency basis for both the fourth quarter and full year 2024 [Three Months Ended December 31, 2024](index=15&type=section&id=Three%20Months%20Ended%20December%2031%2C%202024) For Q4 2024, foreign currency exchange had a negative impact on reported net sales growth, particularly affecting international sales and the Hips category, resulting in higher constant currency growth rates across most segments Net Sales % Change (Q4 2024 vs. 2023) | Category | % Change (Reported) | Foreign Exchange Impact | % Change (Constant Currency) | | :----------------------------------- | :------------------ | :---------------------- | :--------------------------- | | **Geographic Results** | | | | | United States | 4.7% | -% | 4.7% | | International | 3.7% | (1.5)% | 5.2% | | Total | 4.3% | (0.6)% | 4.9% | | **Product Categories** | | | | | Knees Total | 5.1% | (0.5)% | 5.6% | | Hips Total | 3.0% | (1.0)% | 4.0% | | S.E.T. | 8.0% | (0.4)% | 8.4% | | Technology & Data, Bone Cement and Surgical | (4.9)% | (0.6)% | (4.3)% | [Year Ended December 31, 2024](index=16&type=section&id=Year%20Ended%20December%2031%2C%202024) For the full year 2024, foreign currency exchange also had a negative impact on reported net sales, with International sales and the Hips category experiencing the most significant adverse effects, leading to higher constant currency growth rates Net Sales % Change (Full-Year 2024 vs. 2023) | Category | % Change (Reported) | Foreign Exchange Impact | % Change (Constant Currency) | | :----------------------------------- | :------------------ | :---------------------- | :--------------------------- | | **Geographic Results** | | | | | United States | 3.5% | -% | 3.5% | | International | 4.3% | (2.3)% | 6.6% | | Total | 3.8% | (1.0)% | 4.8% | | **Product Categories** | | | | | Knees Total | 4.4% | (0.8)% | 5.2% | | Hips Total | 1.6% | (1.4)% | 3.0% | | S.E.T. | 6.5% | (0.6)% | 7.1% | | Technology & Data, Bone Cement and Surgical | 0.7% | (1.2)% | 1.9% | [Reconciliation of Reported to Adjusted Results (Net Earnings & EPS)](index=17&type=section&id=Reconciliation%20of%20Reported%20to%20Adjusted%20Results%20(Net%20Earnings%20%26%20EPS)) These reconciliations detail the adjustments made to GAAP net earnings and diluted EPS to arrive at adjusted figures for both the fourth quarter and full year 2024 and 2023, with key adjustments including intangible asset amortization, restructuring costs, and litigation expenses [Three Months Ended December 31, 2024 and 2023](index=17&type=section&id=Three%20Months%20Ended%20December%2031%2C%202024%20and%202023) For Q4 2024, significant adjustments, primarily intangible asset amortization and restructuring initiatives, increased reported net earnings of **$239.4 million** to adjusted net earnings of **$462.4 million**, and diluted EPS of **$1.20** to adjusted diluted EPS of **$2.31** Reconciliation of Reported to Adjusted Results (Q4 2024, in millions USD) | Metric | As Reported | Adjustments | As Adjusted | | :------------------------------------------ | :------------------------ | :------------------------ | :------------------------ | | Net Earnings of Zimmer Biomet Holdings, Inc. | $239.4 | $223.0 | $462.4 | | Diluted earnings per common share | $1.20 | $1.11 | $2.31 | Key Adjustments (Q4 2024) * Intangible asset amortization: **$157.6 million** * Restructuring and other cost reduction initiatives: **$20.9 million** * Litigation: **$27.4 million** Reconciliation of Reported to Adjusted Results (Q4 2023, in millions USD) | Metric | As Reported | Adjustments | As Adjusted | | :------------------------------------------ | :------------------------ | :------------------------ | :------------------------ | | Net Earnings of Zimmer Biomet Holdings, Inc. | $419.2 | $38.9 | $458.1 | | Diluted earnings per common share | $2.01 | $0.19 | $2.20 | Key Adjustments (Q4 2023) * Intangible asset amortization: **$144.9 million** * Restructuring and other cost reduction initiatives: **$61.3 million** * Other certain tax adjustments: **$(167.8) million** [Years Ended December 31, 2024 and 2023](index=18&type=section&id=Years%20Ended%20December%2031%2C%202024%20and%202023) For the full year 2024, reported net earnings of **$903.8 million** were adjusted to **$1,630.2 million**, and diluted EPS of **$4.43** to adjusted diluted EPS of **$8.00**, primarily due to significant intangible asset amortization and restructuring costs Reconciliation of Reported to Adjusted Results (Full-Year 2024, in millions USD) | Metric | As Reported | Adjustments | As Adjusted | | :------------------------------------------ | :------------------------ | :------------------------ | :------------------------ | | Net Earnings of Zimmer Biomet Holdings, Inc. | $903.8 | $726.4 | $1,630.2 | | Diluted earnings per common share | $4.43 | $3.57 | $8.00 | Key Adjustments (Full-Year 2024) * Intangible asset amortization: **$591.9 million** * Restructuring and other cost reduction initiatives: **$219.0 million** * Other certain tax adjustments: **$(46.0) million** Reconciliation of Reported to Adjusted Results (Full-Year 2023, in millions USD) | Metric | As Reported | Adjustments | As Adjusted | | :------------------------------------------ | :------------------------ | :------------------------ | :------------------------ | | Net Earnings of Zimmer Biomet Holdings, Inc. | $1,024.0 | $560.2 | $1,584.2 | | Diluted earnings per common share | $4.88 | $2.67 | $7.55 | Key Adjustments (Full-Year 2023) * Intangible asset amortization: **$561.5 million** * Restructuring and other cost reduction initiatives: **$151.9 million** * Other certain tax adjustments: **$(96.0) million** [Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow](index=20&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow) Zimmer Biomet's free cash flow for the full year 2024 increased to **$1,055.3 million** from $978.8 million in 2023, despite a slight decrease in net cash provided by operating activities, primarily due to reduced additions to instruments and other property, plant and equipment Free Cash Flow (Q4 and Full-Year 2024 vs. 2023, in millions USD) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------------ | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Net cash provided by operating activities | $506.2 | $588.4 | $1,499.4 | $1,581.6 | | Additions to instruments | $(51.9) | $(79.0) | $(240.3) | $(311.7) | | Additions to other property, plant and equipment | $(51.5) | $(62.9) | $(203.8) | $(291.1) | | Free cash flow | $402.8 | $446.5 | $1,055.3 | $978.8 | [Reconciliation of Gross Profit & Margin to Adjusted Gross Profit & Margin](index=21&type=section&id=Reconciliation%20of%20Gross%20Profit%20%26%20Margin%20to%20Adjusted%20Gross%20Profit%20%26%20Margin) Adjustments for inventory and manufacturing-related charges and intangible asset amortization significantly increased both gross profit and gross margin for Zimmer Biomet in Q4 and full-year 2024, providing a higher adjusted view of profitability Gross Profit & Margin (Q4 and Full-Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Gross Profit (in millions USD) | $1,278.9 | $1,256.4 | $4,895.5 | $4,748.9 | | Adjusted gross profit (in millions USD) | $1,442.5 | $1,406.2 | $5,506.7 | $5,328.8 | | Gross margin | 63.2% | 64.8% | 63.8% | 64.2% | | Adjusted gross margin | 71.3% | 72.5% | 71.7% | 72.1% | [Reconciliation of Operating Profit & Margin to Adjusted Operating Profit & Margin](index=22&type=section&id=Reconciliation%20of%20Operating%20Profit%20%26%20Margin%20to%20Adjusted%20Operating%20Profit%20%26%20Margin) Adjustments for various non-recurring or non-operational items, including intangible asset amortization and restructuring initiatives, significantly increased Zimmer Biomet's operating profit and margin for both the fourth quarter and full year 2024, presenting a more favorable adjusted operating performance Operating Profit & Margin (Q4 and Full-Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Operating profit (in millions USD) | $389.0 | $354.2 | $1,285.7 | $1,277.7 | | Adjusted operating profit (in millions USD) | $623.2 | $588.5 | $2,195.4 | $2,086.9 | | Operating profit margin | 19.2% | 18.3% | 16.7% | 17.3% | | Adjusted operating profit margin | 30.8% | 30.3% | 28.6% | 28.2% | [Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate](index=23&type=section&id=Reconciliation%20of%20Effective%20Tax%20Rate%20to%20Adjusted%20Effective%20Tax%20Rate) The reconciliation shows that Zimmer Biomet's adjusted effective tax rate for Q4 and full-year 2024 was higher than the reported rate, due to the tax effects of various adjustments to earnings before taxes and other certain discrete tax adjustments Effective Tax Rate (Q4 and Full-Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Effective tax rate | 16.9% | (47.6)% | 12.7% | 4.0% | | Adjusted effective tax rate | 17.5% | 15.8% | 18.0% | 16.3% | [Reconciliation of Debt to Net Debt](index=24&type=section&id=Reconciliation%20of%20Debt%20to%20Net%20Debt) As of December 31, 2024, Zimmer Biomet's net debt increased to **$5,679.1 million** from $5,352.1 million in 2023, reflecting an increase in total debt partially offset by higher cash and cash equivalents Debt to Net Debt (as of Dec 31, 2024 vs. 2023, in millions USD) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :------------------------------------------ | :------------------------- | :------------------------- | | Debt, both current and long-term | $6,204.6 | $5,767.9 | | Cash and cash equivalents | $(525.5) | $(415.8) | | Net debt | $5,679.1 | $5,352.1 | [Explanations of Non-GAAP Adjustments](index=19&type=section&id=Explanations%20of%20Non-GAAP%20Adjustments) This section provides detailed explanations for the various adjustments made to GAAP financial measures to derive non-GAAP results, including inventory and manufacturing-related charges, intangible asset amortization, restructuring initiatives, acquisition/integration costs, litigation expenses, European Union Medical Device Regulation compliance costs, other specific charges, and certain tax adjustments - Inventory and manufacturing-related charges include excess and obsolete inventory, accelerated depreciation, and fixed overhead costs related to plant shutdowns[55](index=55&type=chunk) - Intangible asset amortization and deferred tax rate changes on intangible assets are excluded to allow for performance comparison against peers, given varying acquisition levels[55](index=55&type=chunk) - Restructuring and other cost reduction initiatives cover global programs aimed at reorganizing businesses, reducing costs, and optimizing operations, including employee termination benefits and contract terminations[55](index=55&type=chunk) - Acquisition, integration, divestiture, and related gains and expenses stem from various acquisitions, post-separation costs related to ZimVie, and gains from transition service agreements[55](index=55&type=chunk) - Litigation charges and gains are excluded for patent, product liability, and commercial litigation, to provide useful incremental information, with consistency maintained for subsequent changes in estimates[55](index=55&type=chunk) - Costs related to initial compliance with the European Union Medical Device Regulation (EU MDR) for previously-approved medical devices are excluded, primarily temporary personnel and third-party professional fees[55](index=55&type=chunk) - Other charges include various expenses from specific, highly variable events or projects with significant impact, such as gains and losses from changes in fair value on equity investments[55](index=55&type=chunk) - Other certain tax adjustments relate to significant and discrete tax items, including intercompany transactions, tax-only amortization from restructurings, tax reform impacts, and favorable tax settlements[55](index=55&type=chunk) [Forward-Looking Statements and Risk Factors](index=7&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section outlines Zimmer Biomet's forward-looking non-GAAP financial measures and provides cautionary notes regarding the inherent risks and uncertainties associated with future statements [Forward-Looking Non-GAAP Financial Measures](index=7&type=section&id=Forward-Looking%20Non-GAAP%20Financial%20Measures) Zimmer Biomet includes forward-looking non-GAAP financial measures in its guidance, which are based on internal forecasts that exclude certain items, and quantitative reconciliations to GAAP are not provided due to the unreasonable effort required to predict the timing and nature of excluded items, and to avoid implying a misleading degree of precision - Forward-looking non-GAAP financial measures are based on internal forecasts that omit certain amounts included in GAAP measures, such as charges related to EU MDR compliance, restructuring, acquisition/integration, and certain legal and tax matters[29](index=29&type=chunk) - Quantitative reconciliations to GAAP are not provided for these forward-looking measures due to the unreasonable effort required to predict excluded items and to avoid implying a misleading degree of precision[29](index=29&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=7&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section serves as a cautionary note regarding forward-looking statements, emphasizing that such statements are subject to significant risks, uncertainties, and changes in circumstances that could cause actual results to differ materially, highlighting various factors including competition, pricing pressures, new product development, employee retention, shifts in sales mix, and risks associated with acquisitions like Paragon 28, regulatory approvals, and global economic conditions - Forward-looking statements are based on current beliefs and expectations but are subject to significant risks, uncertainties, and changes in circumstances that could cause actual outcomes to differ materially[30](index=30&type=chunk)[31](index=31&type=chunk) - Key risks include competition, pricing pressures, dependence on new product development, ability to attract and retain skilled employees, shifts in product or regional sales mix, and the successful execution of restructuring plans[31](index=31&type=chunk) - Risks related to the Paragon 28 acquisition include failure to obtain regulatory approvals, lack of stockholder approval, inability to realize anticipated benefits, and integration challenges[31](index=31&type=chunk) - Other significant risks involve business disruptions, supply chain issues, cybersecurity breaches, government investigations, healthcare reform, substantial indebtedness, changes in tax obligations, and global economic and political instability[31](index=31&type=chunk)[32](index=32&type=chunk) - Readers are cautioned not to rely on forward-looking statements, as there is no assurance they will prove accurate, and the company disclaims any obligation to update or revise them[32](index=32&type=chunk)[33](index=33&type=chunk)

Fourth quarter net sales of $2.023 billion increased 4.3% and 4.9% on a constant currency1 basis Fourth quarter diluted earnings per share were $1.20; adjusted1 diluted earnings per share were $2.31 Full-year net sales of $7.679 billion increased 3.8% and 4.8% on a constant currency1 basis Full-year diluted earnings per share were $4.43; adjusted1 diluted earnings per share were $8.00 Company provides full-year 2025 financial guidanceWARSAW, Ind., Feb. 6, 2025 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. ( ...

Core Insights - Zimmer Biomet (ZBH) is expected to report quarterly earnings of $2.30 per share, reflecting a 4.6% increase year-over-year [1] - Revenue forecasts stand at $2.01 billion, indicating a 3.7% year-over-year growth [1] Earnings Estimates - The consensus EPS estimate has been revised down by 0.1% in the last 30 days, indicating a reassessment by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3] Revenue Breakdown - 'Net Sales- Knees' is estimated at $839.93 million, a 5.2% increase from the prior year [5] - 'Net Sales- Other' is projected at $174.21 million, reflecting a 5.2% decrease year-over-year [5] - 'Net Sales- S.E.T' is expected to reach $475.72 million, indicating a 5% increase [5] Regional Sales Estimates - 'Net Sales- Hips' is forecasted at $525.56 million, a 4.1% increase from the previous year [6] - 'Net Sales- Knees- International' is estimated at $347.47 million, showing a 6.3% increase [6] - 'Net Sales- Hips- International' is projected at $252.20 million, reflecting a 4.4% increase [7] U.S. vs. International Sales - 'Net Sales- United States' is expected to reach $1.19 billion, a 5.3% increase year-over-year [8] - 'Net Sales- International' is forecasted at $836.84 million, indicating a 3.1% increase [8] Stock Performance - Over the past month, Zimmer shares have returned +4.4%, outperforming the Zacks S&P 500 composite's +1% [9] - Zimmer currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near future [9]

Zimmer Biomet Holdings, Inc. (ZBH) is scheduled to report fourth-quarter 2024 results on Feb. 6, before market open.See the Zacks Earnings Calendar to stay ahead of market-making news.In the last reported quarter, the company’s earnings of $1.74 missed the Zacks Consensus Estimate by 0.57%. ZBH beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average earnings surprise being 1.76%.Q4 Estimates for ZBHThe Zacks Consensus Estimate for revenues is pegged at $2.01 bi ...

Zimmer Biomet’s (ZBH) strategic product launches amid stabilizing market trends bolster our confidence in this stock. Yet, factors like macroeconomic uncertainties put pressure on the bottom line. The stock carries a Zacks Rank #3 (Hold) currently.Factors Driving ZBH's Share PriceZimmer Biomet has been witnessing strong market share gains within reconstructive Knees and Hips in key geographies in recent times despite macroeconomic challenges. The third quarter of 2024 marked the 11th consecutive quarter in ...

WARSAW, Ind., Jan. 16, 2025 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today announced its fourth quarter earnings conference call will be webcast on Thursday, February 6, 2025 at 8:30 a.m. ET.  A news release detailing the quarterly results will be made available that day at 6:30 a.m. ET. The live audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com.  It will be available for replay following the conference call. Individuals ...

Company Overview - Zimmer Biomet Holdings Inc (NYSE: ZBH) is a prominent player in the Health Care Equipment Industry [1] - The company is strategically expanding its product portfolio, which could potentially alter its revenue growth trajectory [1] - Zimmer Biomet remains liquid and is well-positioned to execute its strategic initiatives [1] Industry Context - The Health Care Equipment Industry is a dynamic sector with significant growth potential [1] - Companies in this industry are focusing on product portfolio expansion to drive revenue growth [1] Strategic Initiatives - Zimmer Biomet is actively working on expanding its product offerings, which is a key strategy to enhance its market position [1] - The company's liquidity position supports its ability to invest in strategic growth initiatives [1]

Core Viewpoint - Zimmer Biomet is experiencing growth driven by strategic product launches and market expansion, particularly in emerging markets, despite facing macroeconomic challenges and operational pressures [2][8][9]. Group 1: Revenue Growth and Market Expansion - Strong revenue growth in emerging markets, particularly in the Asia Pacific region, is a key driver for Zimmer Biomet [2]. - The company is on a diversification journey with its S.E.T. business, expecting mid-single-digit sales growth to continue into 2025 and 2026 [3]. - Zimmer Biomet's international business exceeded sales expectations in the third quarter, supported by strong demand in reconstructive knees, hips, and S.E.T. categories [18]. Group 2: Product Launches and Market Share - The company anticipates significant market share gains from upcoming product launches, including the Oxford Partial cementless Knee and Z1 HAMMR in Europe [10]. - Zimmer Biomet has been witnessing strong market share gains in reconstructive knees and hips across key geographies [18]. Group 3: Financial Performance and Challenges - In the third quarter of 2024, Zimmer Biomet's net sales were negatively impacted by foreign exchange rates, with an expected adverse impact of 75 basis points for the full year [15]. - The company faced a 3.9% increase in the cost of products sold and a 3.1% rise in selling, general, and administrative expenses, leading to a contraction in adjusted gross and operating margins [12]. - Staffing shortages, supply chain issues, and geopolitical complications are creating significant pressure on revenues and operating profit [17].

Company Overview - Zimmer Biomet is a global leader in medical technology with a focus on maximizing mobility and improving health through innovative products and integrated digital and robotic technologies [1][4] - The company operates in over 25 countries and has sales in more than 100 countries, showcasing its extensive global reach [2] Upcoming Events - Zimmer Biomet management will present at the 43rd Annual J.P. Morgan Healthcare Conference on January 14, 2025, at 8:15 a.m. PT (11:15 a.m. ET) [3] - A live webcast of the presentation will be available on the company's Investor Relations website, with an archived replay following the conference [3]