Zimmer Biomet Holdings, Inc. ZBH is scheduled to report fourth-quarter 2024 results on Feb. 6, before market open.

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In the last reported quarter, the company’s earnings of $1.74 missed the Zacks Consensus Estimate by 0.57%. ZBH beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average earnings surprise being 1.76%.

Q4 Estimates for ZBH

The Zacks Consensus Estimate for revenues is pegged at $2.01 billion, suggesting a 3.7% rise from the year-ago reported figure.

The Zacks Consensus Estimate for earnings is pinned at $2.30 per share, indicating a 4.6% improvement from the year-ago reported number.

The Zacks Consensus Estimate for fourth-quarter earnings has been steady over the past 90 days.

Zimmer Biomet Holdings, Inc. Price and EPS Surprise

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

Factors at Play for ZBH's Q4 Earnings

Zimmer Biomet is likely to have experienced strong growth in the fourth quarter on the back of strong performance across its business segments.

The Hips business is expected to have witnessed growth banking on the company’s comprehensive suite of solutions in navigation in direct anterior stems and surgical impactors. The company is expected 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 platforms in Navigation like OrthoGrid are expected to have gained market share in the fourth 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 fourth quarter.

Our model estimates ZBH’s total Knee business to report 3.5% year-over-year growth in the fourth quarter.

Within the Knees business, the company earlier faced some challenges from a supply standpoint, which were expected to be resolved in the latter half of 2024. Meanwhile, Zimmer Biomet is likely to have gained from the ongoing rapid traction of the cementless Persona OsseoTi in the fourth quarter. Further, the recently launched Persona IQ study, the shortest TEM for Persona IQ, is expected to have driven continued uptake of this differentiated technology in the fourth quarter.

During the fourth quarter, Zimmer Biomet received FDA clearance for Persona SoluTion Porous Plasma Spray Femur, a total knee implant component, and FDA’s premarket application supplement approval for the Oxford Cementless Partial Knee. These developments might have had a positive impact on the company’s fourth-quarter top-line performance.

As per our model, the total Knee business is expected to report 5.5% year-over-year growth this time around.

In the fourth 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 recent FDA approval of OsseoFit Stemless Shoulder System for total shoulder replacement is expected to have contributed to the fourth-quarter top line.

Our model estimates ZBH’s total S.E.T business to report 7.3% year-over-year growth for the fourth 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 +4.05% and a Zacks Rank #1. The company is set to release fourth-quarter 2024 results on Feb. 25. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.10%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS indicates an increase of 14.4% from the year-ago quarter reported figure.

Merit Medical Systems MMSI has an Earnings ESP of +3.03% and a Zacks Rank #2. The company is slated to release fourth-quarter 2024 results on Feb. 25.

MMSI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.42%. The Zacks Consensus Estimate for Merit Medical’s fourth-quarter EPS suggests an increase of 2.5% from the year-ago quarter reported figure.

Cencora COR has an Earnings ESP of +0.71% and a Zacks Rank #2. The company is set to release first-quarter fiscal 2025 results on Feb. 2.

The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.45%. The Zacks Consensus Estimate for COR’s first-quarter EPS implies an increase of 7% from the year-ago reported figure.

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