Back to top

Image: Bigstock

Zimmer Biomet to Report Q2 Earnings: Here's What to Expect

Read MoreHide Full Article

Key Takeaways

  • {\"0\":\"ZBH is projected to post Q2 revenues of $2.04B, up 5.3% year over year.\",\"1\":\"Zimmer Biomet\'s Hip and Knee units likely drove growth with new implant systems and ROSA traction.\",\"2\":\"ZBH\'s S.E.T. business expected to rise 2.6% on the back of Paragon 28 acquisition benefits.\"}

Zimmer Biomet Holdings, Inc. (ZBH - Free Report) is scheduled to report second-quarter 2025 results on Aug. 7, before market open.

In the last reported quarter, the company’s earnings of $1.81 surpassed the Zacks Consensus Estimate by 2.84%. ZBH beat on earnings in three of the trailing four quarters and missed on one occasion, the average earnings surprise being 1.06%.

Q2 Estimates for ZBH

The Zacks Consensus Estimate for revenues is pegged at $2.04 billion, suggesting a 5.3% rise from the year-ago reported figure.

The Zacks Consensus Estimate for earnings is pinned at $1.98 per share, indicating a 1.5% decline from the year-ago reported number.

The bottom-line estimate has moved south 0.5% over the past 30 days.

Factors at Play for ZBH's Q2 Earnings

The Hips business is expected to have witnessed growth on the back of the company’s comprehensive suite of solutions in navigation, direct anterior stems and surgical impactors. The company is anticipated to have generated strong sales with Z1, the new triple-taper hip system for interior heap implant procedures, and the automated hip surgical impactor system HAMMR.

Further, robotics and navigation platforms like OrthoGrid are expected to have gained market share in the second quarter. Following the completion of the OrthoGrid acquisition in the fourth quarter of 2024, the company now has a complete product portfolio in hips.

Banking on these developments, the company is expected to report a strong second-quarter revenue increase within this category.

Our model estimates ZBH’s total Hips business to report 4% year-over-year growth.

Within the Knees business, Zimmer Biomet is likely to have gained from the ongoing rapid traction of the Persona portfolio and increased penetration of ROSA.

During the previous quarter, the company received FDA clearance for Persona Revision SoluTion Femur, a revision knee implant component and an alternative for patients with sensitivities to certain metals. This might have had a positive impact on the company’s second-quarter top-line performance.

As per our model, the total Knee business is expected to report 6.2% year-over-year growth this time around.

In the second quarter, the S.E.T business is expected to have continued its growth run led by key areas like CMFT and Sports. The previous quarter marked the sixth consecutive quarter of mid-single-digit growth for the segment. We expect this trend to have continued in the second quarter of 2025 as well.

Zimmer Biomet Holdings, Inc. Price and EPS Surprise

During the to-be-reported quarter, the company completed the acquisition of Paragon 28, Inc. This agreement has expanded the foot and ankle deformity offerings while bolstering the existing fracture and trauma as well as joint replacement portfolios. Additionally, Zimmer Biomet’s RibFix Advantage Fixation System has received CE Mark certification. These developments might have had a positive impact on the company’s second-quarter top-line performance.

Our model estimates ZBH’s total S.E.T. business to report 2.6% year-over-year growth for the quarter.

Sales in the Technology & Data, Bone Cement and Surgical business (historically referred to as "Other") declined in the first quarter due to tough prior-year comparisons and a mix shift toward ROSA volume-based placements over outright sales. We expect this trend to have continued in the second quarter as well.

Our model estimates ZBH’s total Technology & Data, Bone Cement and Surgical business to report 4.7% year-over-year growth for the quarter.

What Our Model Suggests for ZBH

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 below.

Earnings ESP: Zimmer Biomet has an Earnings ESP of +0.97%. 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 #4 (Sell).

Stocks Worth a Look

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle:

Exact Sciences (EXAS - Free Report) has an Earnings ESP of +475.00% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2025 results on Aug. 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 48.8%. As per the Zacks Consensus Estimate, the company’s second-quarter EPS may increase 77.8% from the year-ago quarter’s figure.

Cencora (COR - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2 at present. The company is slated to release third-quarter fiscal 2025 results on Aug. 6.

The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.00%. The Zacks Consensus Estimate for fiscal third-quarter EPS implies a year-over-year increase of 13.2%.

Cardinal Health (CAH - Free Report) has an Earnings ESP of +0.68% and a Zacks Rank #2 at present. The company is expected to release fiscal fourth-quarter 2025 results on Aug. 12.

CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.30%. The Zacks Consensus Estimate for fiscal fourth-quarter EPS suggests a year-over-year improvement of 1.3%.

Published in