Zimmer Holdings Earnings: Here’s Why Investors are Not Excited Now

Zimmer Holdings, Inc. (NYSE:ZMH) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.46%.

Zimmer Holdings, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.72% to $1.43 in the quarter versus EPS of $1.34 in the year-earlier quarter.

Revenue: Rose 3.91% to $1.17 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Zimmer Holdings, Inc. reported adjusted EPS income of $1.43 per share. By that measure, the company missed the mean analyst estimate of $1.44. It beat the average revenue estimate of $1.15 billion.

Quoting Management: “In the second quarter, Zimmer delivered strong sales results, driven by our innovative new product offerings and growth in key geographies,” said David Dvorak, Zimmer President and CEO. “We are confident that the Company will sustain this accelerated top line performance in the second half of the year. Through disciplined capital deployment and our commitment to operational excellence, we will remain focused on creating value for our stockholders.”

Key Stats (on next page)…

Revenue increased 2.64% from $1.14 billion in the previous quarter. EPS increased 1.42% from $1.41 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.26 to a profit $1.27. For the current year, the average estimate is a profit of $5.76, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)