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Zimmer Biomet (ZBH) to Report Q1 Earnings: What's in Store?
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Zimmer Biomet Holdings, Inc. (ZBH - Free Report) is set to report first-quarter 2021 results on May 4, before market open.
In the last-reported quarter, the company’s earnings of $2.11 beat the Zacks Consensus Estimate by 2.4%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 51.01%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
Following a discouraging fourth quarter where the elective procedure volumes declined on the back of surging infection rates and lockdown measures across geographies, Zimmer Biomet’s first-quarter 2021 results are expected to be depressed as well. The company, over the past few months, had been witnessing patient fear arising out of continued surge of the virus, especially in Europe, Middle East, Africa, Asia Pacific and the United States, along with adverse impacts on policy decisions in certain areas. The company believes that it can withstand the pandemic-led business disruptions, backed by its strength in its core business and on-point execution. However, increasing case of infections, along with the recent emergence of the new strain of coronavirus, looms large on the company’s top line in the to-be-reported quarter.
The S.E.T. business (comprising Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma), the company’s major focus area, is expected to have put up a sequentially better performance in the first quarter after a pandemic-led dismal fourth quarter. We expect this arm to deliver better results in the to-be-reported quarter on the back of the company’s focus on sports and extremities, especially upper extremities. Also, Zimmer Biomet is likely to have gained from its increasing presence in the field of Ambulatory Surgery Centers. The increasing adoption of the company’s Signature ONE Planner shoulder system over the past few months buoys optimism regarding first-quarter results. Further, the company’s top line is expected to have been boosted by its comprehensive sports medicine portfolio, with the addition of a complete and innovative arthroscopy tower option post the RELINE buyout.
Zimmer Biomet Holdings, Inc. Price and EPS Surprise
Within the Dental, Spine & CMFT (Craniomaxillofacial and Thoracic) business, even if we don’t consider COVID-19’s impact, Zimmer Biomet has been witnessing growth deceleration in recent quarters, mainly due to unfavorable pricing. However, over the past few months, the segment has been witnessing business recovery on the back of strong commercial execution, new product launches, including robotics, and overall market recovery. This momentum is likely to have continued during the first quarter as well, primarily banking on wider market adoption for robotics, thus driving the top line.
We expect the company to have witnessed strength in its performances within its Hips and Knees product portfolios in the United States, which is better equipped for pandemic support compared to the non-U.S. markets of Zimmer Biomet. The nature of the business, which is non-elective, might have continued with sequential improvement in elective procedure trends. Despite COVID-19-induced hurdles, robust performance of Avenir Complete is likely to have continued during the first quarter as well, thus driving up the Hip business. Also, strong demand for ROSA Knee, along with strong momentum for Persona Revision, is likely to have continued through the to-be-reported quarter.
Zimmer Biomet has rallied 3.9% compared with the industry’s 3.2% growth and the S&P 500's 6.3% rise between the period from January to March 2021 despite challenges posed by the pandemic.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter 2021 revenues is pegged at $1.74 billion, suggesting a decline of 2.2% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s first-quarter 2021 earnings per share of $1.51 suggests an 11.2% fall from the year-ago reported figure.
What Our Model Suggests
Our proven model predicts an earnings beat for Zimmer Biomet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Zimmer Biomet has an Earnings ESP of +1.69%. 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 #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering, as these too have the right combination of elements to beat on earnings this reporting cycle.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +7.06% and a Zacks Rank of 2, at present.
Owens & Minor, Inc. (OMI - Free Report) has an Earnings ESP of +2.41% and is a Zacks #2 Ranked stock.
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Image: Bigstock
Zimmer Biomet (ZBH) to Report Q1 Earnings: What's in Store?
Zimmer Biomet Holdings, Inc. (ZBH - Free Report) is set to report first-quarter 2021 results on May 4, before market open.
In the last-reported quarter, the company’s earnings of $2.11 beat the Zacks Consensus Estimate by 2.4%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 51.01%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
Following a discouraging fourth quarter where the elective procedure volumes declined on the back of surging infection rates and lockdown measures across geographies, Zimmer Biomet’s first-quarter 2021 results are expected to be depressed as well. The company, over the past few months, had been witnessing patient fear arising out of continued surge of the virus, especially in Europe, Middle East, Africa, Asia Pacific and the United States, along with adverse impacts on policy decisions in certain areas. The company believes that it can withstand the pandemic-led business disruptions, backed by its strength in its core business and on-point execution. However, increasing case of infections, along with the recent emergence of the new strain of coronavirus, looms large on the company’s top line in the to-be-reported quarter.
The S.E.T. business (comprising Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma), the company’s major focus area, is expected to have put up a sequentially better performance in the first quarter after a pandemic-led dismal fourth quarter. We expect this arm to deliver better results in the to-be-reported quarter on the back of the company’s focus on sports and extremities, especially upper extremities. Also, Zimmer Biomet is likely to have gained from its increasing presence in the field of Ambulatory Surgery Centers. The increasing adoption of the company’s Signature ONE Planner shoulder system over the past few months buoys optimism regarding first-quarter results. Further, the company’s top line is expected to have been boosted by its comprehensive sports medicine portfolio, with the addition of a complete and innovative arthroscopy tower option post the RELINE buyout.
Zimmer Biomet Holdings, Inc. Price and EPS Surprise
Zimmer Biomet Holdings, Inc. price-eps-surprise | Zimmer Biomet Holdings, Inc. Quote
Within the Dental, Spine & CMFT (Craniomaxillofacial and Thoracic) business, even if we don’t consider COVID-19’s impact, Zimmer Biomet has been witnessing growth deceleration in recent quarters, mainly due to unfavorable pricing. However, over the past few months, the segment has been witnessing business recovery on the back of strong commercial execution, new product launches, including robotics, and overall market recovery. This momentum is likely to have continued during the first quarter as well, primarily banking on wider market adoption for robotics, thus driving the top line.
We expect the company to have witnessed strength in its performances within its Hips and Knees product portfolios in the United States, which is better equipped for pandemic support compared to the non-U.S. markets of Zimmer Biomet. The nature of the business, which is non-elective, might have continued with sequential improvement in elective procedure trends. Despite COVID-19-induced hurdles, robust performance of Avenir Complete is likely to have continued during the first quarter as well, thus driving up the Hip business. Also, strong demand for ROSA Knee, along with strong momentum for Persona Revision, is likely to have continued through the to-be-reported quarter.
Zimmer Biomet has rallied 3.9% compared with the industry’s 3.2% growth and the S&P 500's 6.3% rise between the period from January to March 2021 despite challenges posed by the pandemic.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter 2021 revenues is pegged at $1.74 billion, suggesting a decline of 2.2% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s first-quarter 2021 earnings per share of $1.51 suggests an 11.2% fall from the year-ago reported figure.
What Our Model Suggests
Our proven model predicts an earnings beat for Zimmer Biomet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Zimmer Biomet has an Earnings ESP of +1.69%. 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 #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering, as these too have the right combination of elements to beat on earnings this reporting cycle.
Pacira BioSciences, Inc. (PCRX - Free Report) has an Earnings ESP of +3.80% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +7.06% and a Zacks Rank of 2, at present.
Owens & Minor, Inc. (OMI - Free Report) has an Earnings ESP of +2.41% and is a Zacks #2 Ranked stock.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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