Zimmer Holdings Earnings: Zooms Beyond Analyst Estimates

Zimmer Holdings, Inc. (NYSE:ZMH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.25%.

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Zimmer Holdings, Inc. Earnings Cheat Sheet

Results: Net income decreased -2.43% to $152.8 million ($1.51 per diluted share) in the quarter versus a net gain of $156.6 million in the year-earlier quarter.

Revenue: Rose 1.09% to $1.18 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Zimmer Holdings, Inc. reported adjusted net income of $1.51 per share. By that measure, the company beat the mean analyst estimate of $1.49. It beat the average revenue estimate of $1.17 billion.

Quoting Management: “Throughout 2012, Zimmer successfully executed our value creation agenda, including innovation and growth initiatives, global transformation programs and capital allocation strategies,” said David Dvorak, Zimmer President and CEO…

…For the fourth quarter and full year, Zimmer delivered on our financial commitments, generating double-digit growth in adjusted earnings per share and significant operating margin improvements.  We also achieved key regulatory and commercialization milestones for a number of innovative products and technologies, both in our core franchises and in new, adjacent musculoskeletal markets.  These clinically-differentiated offerings will drive accelerated top-line growth in 2013 and beyond.”

Key Stats:

Revenue increased 15.07% from $1.03 billion in the previous quarter. Net income decreased 14.21% from $178.1 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.44 and has not changed. For the current year, the average estimate is a profit of $5.28, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)