ZBH Gears Up for Q3 Earnings: What Lies Ahead for the Stock?

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].