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Warsaw, Indiana-based Zimmer Biomet Holdings, Inc. (ZBH) designs, manufactures, and markets effective, innovative solutions that support orthopedic surgeons and clinicians in restoring mobility, alleviating pain, and improving the quality of life for patients worldwide. With a market cap of $18.6 billion, it operates in more than 25 countries across the globe and sells products in more than 100 countries.
Zimmer is expected to release its Q2 earnings before the markets open on Thursday, Aug. 7. Ahead of the event, analysts expect it to report a profit of $1.99 per share, down 1% from $2.01 per share reported in the year-ago quarter. While the company has missed the Street’s bottom-line estimates once over the past four quarters, it has surpassed the estimates on three other occasions.
For fiscal 2025, Zimmer is expected to report an EPS of $7.95, marginally down from $8 in fiscal 2024. In fiscal 2026, its EPS is expected to rebound 2.9% year-over-year to $8.18.
ZBH stock has plunged 12.3% over the past 52 weeks, lagging behind the Health Care Select Sector SPDR Fund’s (XLV) 10.4% drop and the S&P 500 Index’s ($SPX) 10.5% gains during the same time frame.
Despite delivering better-than-expected financials, ZBH stock plunged 11.6% in the trading session following the release of its Q1 results on May 5. The company’s performance was notably impacted due to currency headwinds. However, its net sales inched up 1.1% year-over-year to $1.9 billion and surpassed the Street's expectations by a thin margin. Meanwhile, its adjusted EPS dropped 6.7% year-over-year to $1.81, but surpassed the consensus estimates by 2.8%.
Furthermore, the company improved its full-year topline guidance. However, it reduced its full-year EPS guidance from the previously announced $8.15 - $8.35 range to $7.90 - $8.10, which unsettled investor confidence.
The stock maintains a consensus “Moderate Buy” rating overall. Of the 27 analysts covering the ZBH stock, opinions include eight “Strong Buys,” two “Moderate Buys,” 15 “Holds,” and two “Strong Sells.” Its mean price target of $107.04 suggests a 13.6% upside potential from current price levels.
