Medical device company Zimmer Biomet (NYSE: ZBH) will be announcing earnings results this Wednesday before market hours. Here’s what to look for.
Zimmer Biomet beat analysts’ revenue expectations last quarter, reporting revenues of $2.09 billion, up 9.3% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a narrow beat of analysts’ full-year EPS guidance estimates.
Is Zimmer Biomet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Zimmer Biomet’s revenue to grow 2.7% year on year, slowing from the 7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Zimmer Biomet rarely misses Wall Street’s revenue estimates.
Looking at Zimmer Biomet’s peers in the healthcare equipment and supplies segment, some have already reported their Q2 results, giving us a hint as to what we can expect. CONMED posted flat year-on-year revenue, beating analysts’ expectations by 1.8%, and Baxter reported revenues up 5.3%, topping estimates by 6%. CONMED traded up 8.7% following the results while Baxter was also up 5.6%.
Read our full analysis of CONMED’s results here and Baxter’s results here.
Investors in the healthcare equipment and supplies segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Zimmer Biomet is up 8.6% during the same time and is heading into earnings with an average analyst price target of $99.38 (compared to the current share price of $97.50).
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