Zimmer Biomet (ZBH) Surpasses Q1 Earnings and Revenue Estimates

Company Performance - Zimmer Biomet reported quarterly earnings of $1.81 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, but down from $1.94 per share a year ago, representing an earnings surprise of 2.84% [1] - The company posted revenues of $1.91 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.88% and showing a slight increase from $1.89 billion year-over-year [2] - Over the last four quarters, Zimmer has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - The immediate price movement of Zimmer's stock will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - Zimmer shares have declined approximately 3.1% since the beginning of the year, slightly outperforming the S&P 500's decline of 3.3% [3] - The current consensus EPS estimate for the upcoming quarter is $2.02 on revenues of $1.98 billion, and for the current fiscal year, it is $8.22 on revenues of $7.88 billion [7] Industry Context - The Medical - Products industry, to which Zimmer belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Zimmer's stock performance [5][6]