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Zimmer Biomet (ZBH) Tops Q1 Earnings, Revenue Estimates

Ever undergone reconstructive orthopedic surgery? Yes, then you may have been implanted with one of the personalized joint replacement technologies of Indiana-based, one of the leading orthopedic medical devices manufacturer–Zimmer Biomet Holdings, Inc. ZBH, formerly known as Zimmer Holdings. In June 2015, legacy Zimmer completed the acquisition of Biomet for $14.0 billion. With operations in more than 25 countries, the company markets its orthopedic reconstructive, spinal and trauma devices, biologics, dental implants and related surgical products in more than 100 countries.

Currently, Zimmer Biomet has a Zacks Rank #2 (Buy) but that could change following its first quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings:The Zacks Consensus Estimate remained steady at $1.93 per share over the last 60 days. Zimmer Biomet’s adjusted earnings per share of $2.00 beat this estimate by 3.6%.

Revenues:Zimmer Biomet posted revenues of $1.904 billion, comfortably beating the Zacks Consensus Estimate for revenues of $1.880 billion.

Key Stats: Revenues derived from Zimmer’s Knees segment were up 3.5% year over year at adjusted proforma CER to $703 million, while Hips recorded sales of $468 million, up 0.5% compared with the prior-year quarter. Revenues from S.E.T (Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma) improved 0.2% to $401 million.

Major Factors:  Zimmer Biomet kick started 2016 on a strong note and expects to exit the year at or above market growth rates, driven by the company’s focused commercial channel and the cross-selling opportunities across its market-leading musculoskeletal portfolio. The company also declared a first quarter dividend of 24 cents per share, reflecting an increase of 9.1% over the dividend declared in the prior year quarter.

Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session.

Check back later for our full write up on this Zimmer Biomet earnings report later!

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