Zimmer Holdings Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Zimmer Holdings, Inc. (NYSE:ZMH) will unveil its latest earnings on Thursday, January 26, 2012. Zimmer Holdings designs, develops, manufactures and markets orthopedic and dental reconstructive implants, spinal implants, and trauma products.

Zimmer Holdings, Inc. Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.34 per share, a rise of 5.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.35. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.34 during the last month. For the year, analysts are projecting profit of $4.78 per share, a rise of 10.4% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of $1.04 a share versus the estimate of profit of $1.03 a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 2.7% in revenue from the year-earlier quarter to $1.16 billion.

Analyst Ratings: Analysts seem relatively indifferent about Zimmer Holdings with 16 of 27 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 0.2% to $191.5 million ($1.01 a share) from $191.1 million (96 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.9% to $1.03 billion from $965 million.

Key Stats:

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

Revenue has risen the past four quarters. Revenue rose 7.5% in the second quarter from the year earlier, climbed 5% in the first quarter from the year-ago quarter and 2.5% in the fourth quarter of the last 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. (NASDAQ: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).

Stock Price Performance: During November 21, 2011 to January 20, 2012, the stock price had risen $7.91 (16.4%) from $48.14 to $56.05. The stock price saw one of its best stretches over the last year between April 29, 2011 and May 10, 2011 when shares rose for eight-straight days, rising 6.8% (+$4.44) over that span. It saw one of its worst periods between November 14, 2011 and November 25, 2011 when shares fell for nine-straight days, falling 9.7% (-$5.09) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com