Zimmer Biomet Holdings, Inc. ZBH posted first-quarter 2021 adjusted earnings per share (EPS) of $1.71, beating the Zacks Consensus Estimate by 13.2%. The figure edged past the year-ago adjusted number by 0.6% year over year.The quarter’s adjustments include certain inventory amortization, restructuring, quality remediation, acquisition, integration, and related costs among others.On a reported basis, the company registered earnings of 94 cents per share against loss of $2.46 a year ago.Revenue DetailsFirst-quarter net sales of $1.85 billion were up 3.6% (up 0.8% at constant exchange rate or CER) year over year. The figure exceeded the Zacks Consensus Estimate by 6.3%.Segmental DetailsDuring the first quarter, sales generated in the Americas totaled $1.12 billion (up 13% year over year at CER) while the same in EMEA (Europe, the Middle East and Africa) grossed $384.2 million (down 10.3% year over year at CER). Asia-Pacific registered 15.5% rise at CER to $348.2 million.SegmentsSales in the Knees unit declined 5.2% year over year at CER to $614.3 million. Hips recorded a 0.3% improvement at CER to $447 million. Revenues in the S.E.T. (Sports Medicine, Extremities and Trauma) unit increased 7.2% year over year to $417.6 million.Zimmer Biomet Holdings, Inc. Price, Consensus and EPS Surprise Zimmer Biomet Holdings, Inc. price-consensus-eps-surprise-chart | Zimmer Biomet Holdings, Inc. QuoteAmong other segments, Dental & Spine rose 9.6% at CER to $246 million. Other revenues were down 2.5% to $122.5 million.For investors’ note, CMFT (Craniomaxillofacial and Thoracic) products, previously reported in the Dental, Spine & CMFT category, are now included in the S.E.T. category. Meanwhile, the company is progressing with the planned spin-off procedure of the dental & spine arm.MarginsGross margin, after excluding intangible asset amortization, was 72%, reflecting a contraction of 65 basis points (bps) in the first quarter. Selling, general and administrative expenses were down 7.1% to $770.1 million. Research and development expenses declined 4.1% to $94.4 million. Adjusted operating margin expanded 454 bps to 25.3% during the quarter.Cash PositionZimmer Biomet exited the first quarter of 2021 with cash and cash equivalents of $724.3 million compared with $802.1 million at fourth-quarter end. Long-term debt at the end of the reported quarter totaled $7.54 billion compared with $7.63 billion at the end of the sequentially-last quarter.Cumulative net cash provided by operating activities at the end of the first quarter was $246.5 million compared with $450.9 million in the year-ago period.2021 GuidanceThis time, the company provided its financial guidance for 2021.Reported revenue growth is expected in the range of 14% to 17% compared with the last year.Adjusted EPS for the full year is expected in the range of $7.60 to $8.00.The Zacks Consensus Estimate for 2021 adjusted earnings is pegged at $7.65 on revenues of $7.94 billion.Spine and Dental Spin-Off UpdateAs announced earlier, Zimmer Biomet, in its effort to focus on high growth, high priority areas in Knees, Hips, S.E.T. and CMFT, is in the process to spin off its Spine and Dental businesses. This divestment will form a new and independent, publicly traded company (NewCo). According to Zimmer Biomet management, this is part of the company’s third phase of ongoing transformation, which includes changing the complexion of the business through active portfolio management in order to accelerate growth and drive value creation. Per the latest update, the company has appointed Vafa Jamalias the president of NewCo. Our TakeZimmer Biomet ended the first quarter with better-than-expected revenues and earnings. However, year-over-year earnings and constant currency revenue growth were lackluster as sales declined across a few of its operating segments and geographies. However, its core hip and S.E.T. business registered growth in the reported quarter. Operating margin expansion was another upside.Meanwhile, the spin-off decision of the non-core dental and spine business is strategic.Zacks Rank and Key PicksZimmer Biomet currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space are Boston Scientific Corporation BSX, Illumina, Inc. ILMN and HCA Healthcare, Inc. HCA. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Boston Scientific reported first-quarter 2021 adjusted EPS of 37 cents, beating the Zacks Consensus Estimate by 23.3%. Net revenues of $2.75 billion outpaced the consensus estimate by 5.3%. It currently carries a Zacks Rank #2 (Buy).Illumina, a Zacks Rank #2 company, reported first-quarter 2021 adjusted EPS of $1.89, beating the Zacks Consensus Estimate by 38.9%. Revenues of $1.09 billion outpaced the consensus estimate of $1.08 billion.HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion exceeded the Zacks Consensus Estimate by 2.2%. It currently carries a Zacks Rank #2.More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illumina, Inc. (ILMN): Free Stock Analysis Report Boston Scientific Corporation (BSX): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research