Yahoo Finance Zimmer Biomet (ZBH) to Report Q1 Earnings: What's in Store?
Zimmer Biomet Holdings, Inc. ZBH is scheduled to report first-quarter 2023 results on May 2, before market open.
In the last reported quarter, the company’s earnings of $1.88 exceeded the Zacks Consensus Estimate by 2.73%. Over the trailing four quarters, its earnings outperformed the consensus estimate on each occasion, the average beat being 7.67%. Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
Zimmer Biomet is expected to have witnessed continued procedure recovery in its legacy business in the first quarter, despite the choppy market situation amid real macroeconomic challenges. Added to this, strong strategic execution and a solid momentum with innovations are expected to have driven first-quarter revenues from the Knee and Hip businesses.
However, the company might have faced upheaval in business, thanks to the global inflationary situation in terms of mounting labor and raw material costs, severe staffing shortages and supply issues, which might have impacted ZBH’s bottom line in the first quarter.
Further, the implementation of the volume-based procurement program brought down China’s orthopedic device prices, which might have otherwise impacted ZBH’s business in this region in the to-be-reported quarter.
We expect the company to have witnessed strength in its performances within its Hips and Knees product portfolio in the United States. Apart from a strong recovery in elective procedures, easy comparisons outside the United States, strong knee procedure recovery across most regions, continued global traction for the Persona knee system (including both Persona primary and revision in the United States), and continued increase in Rosa procedure penetration and pull throughare expected to have contributed to the company’s Knees business.
Zimmer Biomet Holdings, Inc. Price and EPS Surprise
Zimmer Biomet Holdings, Inc. price-eps-surprise | Zimmer Biomet Holdings, Inc. Quote
The strong performance of the G7 Revision System and Avenir Complete primary hip, which is focused on the direct anterior surgical approach,is likely to have continued during the first quarter, thus driving the Hip business. Further, the continued solid Rosa pull-through in the hip category, especially in the United States, too should significantly contribute to the top line within the Hip category.
Meanwhile, in the fourth quarter, priority areas like the S.E.T. business (comprising Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma) reported strong performance across key focus areas of CMFT, sports medicine, and upper extremities. This might have been once again repeated in the first quarter. Zimmer Biomet is also likely to have gained from the launch of the Identity shoulder system in the United States.
SET might have been impacted by a comp tailwind from China VBP that was partially offset by reimbursement changes in restorative therapies.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter 2023 revenues is pegged at $1.70 billion, suggesting a 2.5% rise from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings per share of $1.66 indicates a 3.1% rise from the year-ago adjusted earnings.
What Our Model Suggests
Per our proven model, a stock with a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a higher chance of beating estimates. This is not the case here as you can see:
Earnings ESP: Zimmer Biomet has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Stocks to Consider
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Bio-Rad Laboratories BIO has an Earnings ESP of +0.16% and a Zacks Rank of #1. The company is slated to release first-quarter 2023 results on May 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bio-Rad’s expected earnings growth rate for 2023 is 10.3%. BIO’s earnings yield of 3.38% compares favorably with the industry’s (2.78%).
Henry Schein, Inc.HSIC has an Earnings ESP of +0.99% and a Zacks Rank of #1. Henry Scheinis scheduled to release first-quarter fiscal 2023 results on May 2.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%. HSIC’s2024 growth rate is estimated to be 7.7%.
Teva Pharmaceutical Industries Limited TEVA currently has an Earnings ESP of +14.97% and a Zacks Rank of #2. TEVA is scheduled to release first-quarter 2023 results on May 2.
TEVA’s 2024 growth rate is estimated to be 4.4%. TEVA’s earnings yield of 25.50% compares favorably with the industry’s (34.35%).
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Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report
Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report
