Here's How Zimmer Biomet (ZBH) is Poised Ahead of Q2 Earnings

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].