Zimmer Biomet to Report Q1 Earnings: Here's What to Expect

Zimmer Biomet Holdings, Inc. ZBH is scheduled to report first-quarter 2025 results on May 5, before market open.

In the last reported quarter, the company’s earnings of $2.31 surpassed the Zacks Consensus Estimate by 0.4%. ZBH beat on earnings in three of the trailing four quarters and missed on one occasion, the average earnings surprise being 1.28%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

Q1 Estimates for ZBH

The Zacks Consensus Estimate for revenues is pegged at $1.89 billion, suggesting a 0.2% rise from the year-ago reported figure.

The Zacks Consensus Estimate for earnings is pinned at $1.77 per share, indicating an 8.8% decline from the year-ago reported number.

The bottom-line estimate has remained steady over the past 90 days.

Factors at Play for ZBH's Q1 Earnings

Zimmer Biomet is likely to have experienced strong growth in the quarter due to robust performance across its business segments.

The Hips business is expected to have witnessed growth on the back of the company’s comprehensive suite of solutions in navigation, in 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 first quarter. Following the completion of the OrthoGrid acquisition in the fourth quarter, the company now has a complete product portfolio in hips.

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

Our model estimates ZBH’s total Knee business to report 1.6% year-over-year decline.

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 first 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. Additionally, in the previous quarter, Zimmer Biomet launched the Persona IQ study, the shortest TEM for Persona IQ. These developments might have had a positive impact on the company’s first-quarter top-line performance.

As per our model, the total Knee business is expected to report 2.3% year-over-year growth this time around.

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

Zimmer Biomet Holdings, Inc. Price and EPS Surprise

Zimmer Biomet Holdings, Inc. price-eps-surprise | Zimmer Biomet Holdings, Inc. Quote

The latest agreement to acquire all of the outstanding shares of Paragon 28 might have contributed to the quarterly top-line numbers. This agreement is also expected to have expanded the foot and ankle deformity offerings while bolstering the existing fracture and trauma as well as joint replacement portfolios. 

Our model estimates ZBH’s total S.E.T. business to report 0.3% 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 0.00%. 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:

Masimo MASI has an Earnings ESP of +0.64% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to release first-quarter 2025 results soon. 

MASI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.41%. The Zacks Consensus Estimate for first-quarter EPS implies a year-over-year increase of 61%.

Veeva Systems VEEV has an Earnings ESP of +0.17% and a Zacks Rank #1 at present. The company is expected to release first-quarter fiscal 2026 results shortly.

The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.92%. The Zacks Consensus Estimate for first-quarter EPS implies a year-over-year increase of 16%.

Hims & Hers Health HIMS has an Earnings ESP of +115.69% and a Zacks Rank #2 at present. The company is slated to release first-quarter 2025 results on May 5, 2025. 

HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 40.42%. The Zacks Consensus Estimate for Hims & Hers Health’s first-quarter EPS suggests a year-over-year improvement of 180%.

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This article originally published on Zacks Investment Research (zacks.com).

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