Zimmer Holdings Inc. Earnings Cheat Sheet: Positive Earnings Streak

S&P 500 (NYSE:SPY) component Zimmer Holdings Inc. (NYSE:ZMH) reported its results for the third quarter. Zimmer Holdings designs, develops, manufactures and markets orthopedic and dental reconstructive implants, spinal implants, and trauma products.

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Zimmer Holdings Earnings Cheat Sheet for the Third Quarter

Results: Net income for Zimmer Holdings Inc. rose to $191.5 million ($1.01 per share) vs. $191.1 million (96 cents per share) in the same quarter a year earlier. This marks a rise of 0.2% from the year earlier quarter.

Revenue: Rose 6.9% to $1.03 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ZMH reported adjusted net income of $1.04 per share. By that measure, the company was about in line with expectations as the mean analyst estimate was $1.03 per share. Analysts were expecting revenue of $1.03 billion.

Quoting Management: “Zimmer delivered against our financial commitments in the third quarter with consistent results in both revenues and earnings,” said David Dvorak, Zimmer President and CEO.”Progress in the commercialization of new products supported a strong performance in many international markets. Through this progress and ongoing financial discipline, we continue to deliver value to stockholders.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 23.1% and in the first quarter, the figure rose 1.7%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the second quarter, by 6 cents in the first quarter, and by 8 cents in the fourth quarter of the last fiscal year.

Gross margin shrank 1.7 percentage points to 75.6%. The contraction appeared to be driven by increased costs, which rose 14.9% from the year earlier quarter while revenue rose 6.9%.

Revenue has risen the past four quarters. Revenue increased 7.5% to $1.14 billion in the second quarter. The figure rose 5% in the first quarter from the year earlier and climbed 2.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.35 per share from $1.34. The average estimate hasn’t changed from $4.77 per share for the fiscal year.

Competitors to Watch: Stryker Corporation (NYSE:SYK), Exactech, Inc. (NASDAQ:EXAC), Wright Medical Group, Inc. (NASDAQ:WMGI), RTI Biologics Inc. (NASDAQ:RTIX), Tornier N.V. (TRNX), Smith & Nephew plc (NYSE:SNN), MAKO Surgical Corp. (NASDAQ:MAKO), NuVasive, Inc. (NASDAQ:NUVA), TranS1 Inc. (NASDAQ:TSON), and Alphatec Holdings, Inc. (NASDAQ:ATEC).

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(Source: Xignite Financials)

 

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