Zimmer Holdings Earnings Preview: Analysts Expect Higher EPS, Revenue

Zimmer Holdings ZMH releases its next round of earnings this Thursday, October 27, 2011. Here's Benzinga's advanced look at Zimmer Holdings' third quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of $1.03/share and revenues of $1.03 billion. Zimmer Holdings' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 96 cents/share on revenues of $965 million. We'll know on Thursday whether Zimmer Holdings has managed the estimated 7.3% increase in EPS and 6.7% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

QuarterQ2Q1Q4Q3
EPS Estimate$1.19$1.13$1.19$0.95
EPS Actual$1.21$1.19$1.27$0.96

Stock Performance:

As of October 24, 2011, Zimmer Holdings' current share price was $55. Since January 1st, shares of Zimmer Holdings have given investors a return of 2.5%. For a full 12 months, the return has risen by 6%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
  • Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Zimmer Holdings is a Hold. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how some of the other healthcare companies are doing? Here are a few of Zimmer Holdings' peers in that sector.
  • Alphatec Holdings ATEC: Moderate Buy with a -$0.02 recent quarter EPS
  • Exactech EXAC: Moderate Buy with a $0.28 recent quarter EPS
  • NuVasive NUVA: Moderate Buy with a $0.19 recent quarter EPS
  • MAKO SURGICAL (MAKO): Hold with a -$0.24 recent quarter EPS

The medical products company's industry has seen price/earnings growth of 1.5% during the current fiscal year.

Finally, a description of the company's main areas of operation: Zimmer Holdings designs, develops, manufactures and markets orthopedic and dental reconstructive implants, spinal implants, and trauma products.

Take Action:

That's your advanced look at Zimmer Holdings' upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

  • To see up-to-date news on Zimmer Holdings, click here
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  • To see other company earnings recaps, click here
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Posted In: EarningsLong IdeasNewsShort IdeasPreviewsTrading IdeasHealth CareHealth Care Equipment
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