Zimmer Holdings Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Zimmer Holdings, Inc. (NYSE:ZMH) will unveil its latest earnings on Thursday, October 27, 2011. 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 profit of $1.03 per share, a rise of 7.3% 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 $1.06. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.03 during the last month. Analysts are projecting profit to rise by 10.2% versus last year to $4.77.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of $1.21 a share versus the estimate of profit of $1.19 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 6.7% in revenue from the year-earlier quarter to $1.03 billion.

Analyst Ratings: Analysts seem relatively indifferent about Zimmer Holdings with 15 of 28 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 23.1% to $203.8 million ($1.06 a share) from $165.5 million (82 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 7.5% to $1.14 billion from $1.06 billion.

Key Stats:

Revenue has gone up for three straight quarters. It rose 5% in the first quarter from the year earlier and 2.5% in the fourth quarter of the last fiscal year.

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 6.3% 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.

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).

Stock Price Performance: During July 28, 2011 to October 21, 2011, the stock price had fallen $5.60 (-9.3%) from $60.24 to $54.64. 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 July 21, 2011 and August 2, 2011 when shares fell for nine-straight days, falling 11.5% (-$7.45) over that span. Shares are up 96 cents (+1.8%) year to date.

(Source: Xignite Financials)

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