Market Overview

Zimmer Biomet Holdings's Earnings Outlook

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Zimmer Biomet Holdings (NYSE: ZBH) announces its next round of earnings this Friday, November 06. Here is Benzinga's everything-that-matters guide for this Friday's Q3 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Zimmer Biomet Holdings reporting earnings of $1.07 per share on sales of $1.71 billion. Zimmer Biomet Holdings EPS in the same period a year ago totaled $1.77. Revenue was $1.89 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Friday, quarterly profit would be down 39.55%. Revenue would be down 9.62% from the year-ago period. Zimmer Biomet Holdings's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.75 1.35 2.27 1.75
EPS Actual 0.05 1.70 2.30 1.77
Revenue Estimate 897.32 M 1.79 B 2.11 B 1.87 B
Revenue Actual 1.23 B 1.78 B 2.13 B 1.89 B

Stock Performance

Shares of Zimmer Biomet Holdings were trading at $136.63 as of November 04. Over the last 52-week period, shares are down 3.65%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Zimmer Biomet Holdings is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: Earnings