Zimmer Biomet Holdings, Inc. ZBH is set to unveil its third-quarter 2024 results on Oct. 30, before the market stirs.
The past quarter saw the company’s earnings of $2.01 outpace the Zacks Consensus Estimate by 1.5%. ZBH has consistently outperformed earnings expectations over the last four quarters, with an average surprise of 2.84%.
Estimates for ZBH in Q3
The Zacks Consensus Estimate for revenues points to $1.81 billion, mirroring a 3.3% rise from the same period last year.
For earnings, the Zacks Consensus Estimate stands at $1.75 per share, reflecting a 6.1% uptick from previous year numbers.
Trends in Estimates Prior to ZBH’s Q3 Earnings
The Zacks Consensus Estimate for earnings has edged down by 1.1% to $1.75 a share in the last 30 days.
Lets delve into what might have transpired for this MedTech magnate in the upcoming quarter.
Factors Impacting ZBH’s Performance
Zimmer Biomet is poised to embrace robust growth in the third quarter fueled by the stellar performance of its business divisions.
The Hip segment is anticipated to experience growth, backed by the company’s array of solutions in navigation and surgical impactors.
Following significant progress in new product introductions, such as the surgical impactor HAMMR, and the acquisition of OrthoGrid Systems, Inc., ZBH expects a prosperous revenue surge in the Hip category during the third quarter.
Challenges faced by the Knees business from a supply perspective aside, the company managed a 5% growth in knees in the previous quarter, a trend likely to continue in Q3.
The S.E.T. business observed mid-single digit growth, and with ongoing developments like the introduction of ROSA and the partnership with THINK Surgical for TMINI, a positive revenue impact is expected for the third quarter.
Insights from the Model on ZBH
Based on our predictive model, a stock with a positive Earnings ESP along with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) stands a better chance of besting estimates. For ZBH, the scenario looks different.
Earnings ESP: Zimmer Biomet holds an Earnings ESP of -1.65%.
Zacks Rank: The company presently sits at a Zacks Rank #4 (Strong).
Promising Stocks to Watch
Consider these medical stocks with the potential for an earnings beat this reporting cycle:
Atea Pharmaceuticals AVIR boasts an Earnings ESP of +13.13% and currently holds a Zacks Rank #1.
RadNet RDNT features an Earnings ESP of +20.00% with a Zacks Rank #2.
TransMedics Group TMDX presents an Earnings ESP of +26.63% alongside a Zacks Rank #3.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
