Zimmer Holdings, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Zimmer Holdings, Inc. (NYSE:ZMH) will unveil its latest earnings on Wednesday, July 27, 2011. Zimmer Holdings, Inc. designs, develops, manufactures and markets orthopaedic and dental reconstructive implants, spinal implants, trauma products and other products.

Zimmer Holdings, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.19 per share, a rise of 9.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.18. For the year, analysts are projecting profit of $4.77 per share, a rise of 10.2% from last year.

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Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 6 cents, reporting net income of $1.19 per share against a mean estimate of profit of $1.13 per share.

Wall St. Revenue Expectations: On average, analysts predict $1.13 billion in revenue this quarter, a rise of 6.6% from the year ago quarter. Analysts are forecasting total revenue of $4.47 billion for the year, a rise of 5.9% from last year’s revenue of $4.22 billion.

Analyst Ratings: Analysts seem relatively indifferent about Zimmer Holdings with 17 of 32 analysts surveyed maintaining a hold rating.

Key Stats:

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 17.4% over the past four quarters. The quarter hit the hardest was the fourth quarter of the last fiscal year, that saw a 77.5% drop.

The company’s revenue has now risen for two straight quarters. In first quarter, revenue increased 5% to $1.12 billion from the year earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 2.5%.

Competitors to Watch: Stryker Corporation (NYSE:SYK), Exactech, Inc. (NASDAQ:EXAC), Wright Medical Group, Inc. (NASDAQ:WMGI), RTI Biologics Inc. (NASDAQ:RTIX), 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 June 22, 2011 to July 21, 2011, the stock price had risen $2.59 (4.2%) from $62.15 to $64.74. 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 May 27, 2011 and June 8, 2011 when shares fell for eight-straight days, falling 7% (-$4.75) over that span. Shares are up $11.06 (+20.6%) year to date.

(Source: Xignite Financials)

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