Core Insights - Zimmer Biomet Holdings, Inc. (ZBH) reported second-quarter 2025 adjusted earnings per share (EPS) of $2.07, exceeding the Zacks Consensus Estimate by 4.5% and reflecting a 3% year-over-year increase [1][9] - The company's second-quarter net sales reached $2.08 billion, marking a 7% increase year over year, and surpassing the Zacks Consensus Estimate by 1.6% [3][9] - ZBH raised its 2025 EPS guidance to a range of $8.10-$8.30, indicating strength in high-growth, non-core segments [9][12] Revenue Performance - Second-quarter net sales of $2.08 billion increased by 7% year over year, with a 5.4% increase at constant exchange rates (CER) [3][9] - U.S. sales totaled $1.17 billion, up 6.1% year over year, while international sales reached $903.5 million, reflecting an 8.1% year-over-year increase and 4.6% at CER [4][9] Segment Analysis - Sales in the Knees unit improved by 1.8% year over year at CER to $826 million, while Hips sales grew by 4% year over year at CER to $536.1 million [5][6] - The S.E.T. unit saw a significant revenue increase of 16% year over year at CER to $550.6 million, outperforming estimates [6] - Revenues from Technology & Data, Bone Cement and Surgical decreased by 2.2% to $164.6 million at CER [6] Margin and Expense Overview - Adjusted gross margin remained flat year over year at 71.5%, while selling, general and administrative expenses rose by 10.5% to $814.8 million [7] - Research and development expenses increased by 3.6% to $113.3 million, and adjusted operating margin contracted by 109 basis points to 26.8% [7] Cash Position - At the end of the second quarter, ZBH had cash and cash equivalents of $556.9 million, down from $1.38 billion at the end of the first quarter of 2025 [10] - Cumulative net cash provided by operating activities was $761 billion, compared to $597.4 billion in the year-ago period [10] Updated Financial Outlook - ZBH updated its revenue growth expectation for 2025 to a range of 6.7-7.7%, with foreign exchange anticipated to negatively impact revenues by 0.5% [11] - The adjusted EPS for the full year is now expected to be in the range of $8.10-$8.30, up from the previous estimate of $7.90-$8.10 [12] Strategic Developments - The company completed the acquisition of Paragon 28 in the second quarter, which is expected to enhance innovation and diversification in the S.E.T. business [14]

Zimmer Biomet Holdings, Inc. (ZBH) posted first-quarter 2025 adjusted earnings per share (EPS) of $1.81, which beat the Zacks Consensus Estimate by 2.3%. The adjusted figure, however, declined 6.7% year over year.The quarter’s adjustments included certain amortization, restructuring and other cost reduction initiatives, inventory and manufacturing-related charges and European Union Medical Device Regulation-related charges, among others.On a reported basis, the company registered earnings of 91 cents per sh ...