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 ...

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 ...