Earnings Preview: Zimmer Holdings

| About: Zimmer Biomet (ZBH)

Zimmer (ZMH) is expected to report Q3 earnings before market open Thursday Oct. 23 with a conference call scheduled for 8:00 am ET.


Analysts are looking for a profit of 89c on revenue of $963M. The consensus range is 85c to 92c for EPS, and revenue of $947M to $983M, according to First Call. For Q2 Zimmer reported reports Q2 EPS in-line at $1.03 and revenue of $1.08B versus consensus of $1.07B.

Analyst Views

Positive drivers for this quarter include continued strength in the implant business and pricing increases. Risks to this quarters include increasing competition in the hip replacement business and a strengthening dollar. On September 19, Stanford initiated Zimmer with a Buy and a $77 target. Stanford believes Zimmer can grow its spine, trauma, and biologic divisions, and they think the company can benefit significantly from acquisitions. On September 10, Banc of America initiated Zimmer with a Buy and a target of $80.