Will ZBH Beat Wall Street Earnings Estimates in 4Q17?


Jan. 26 2018, Updated 7:36 a.m. ET

Analyst estimates

Zimmer Biomet Holdings (ZBH) accounts for ~0.17% of the total holdings of the Vanguard International High Dividend Yield ETF (VYMI). Zimmer Biomet Holdings plans to announce its 4Q17 and fiscal 2017 earnings results on January 30. The company’s earnings results have failed to meet analysts’ estimates over the last two quarters. Generally, stock price movements are triggered by any deviation in a company’s results from analysts’ estimates. Stock prices are likely to move up if the actual results exceed analysts’ estimates and vice versa.

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According to Wall Street analysts’ estimates, Zimmer Biomet Holdings’ 4Q17 adjusted diluted EPS (earnings per share) will come in at $2.10. For fiscal 2017, ZBH’s adjusted EPS are expected to be $8.03, as per Wall Street estimates. On a YoY (year-over-year) basis, these estimates represent a decline of 1.9% versus growth of 0.87% in fiscal 4Q17 and fiscal 2017, respectively.

Company guidance

Zimmer Biomet Holdings expects to register adjusted diluted EPS in the range of $2.08 to $2.14 in fiscal 4Q17. For full-year 2017, the company has estimated an earnings range of $3.80 to $3.93.

The company continues to expect lower sales as a result of the continued impact of supply disruptions at its Warsaw plant and the impact of macroeconomic factors, including hurricanes in the previous quarter and the impact of knee implant price cuts in India. Lower sales are expected to have an impact on the company’s earnings as well, and profitability in 4Q17 could be negatively impacted. The regional and product sales mix—which is likely to be partially offset by favorable currency adjustments—could negatively impact profits.

Zimmer Biomet Holdings’ peers Stryker (SYK), Abbott Laboratories (ABT), and Becton, Dickinson and Company (BDX) are expected to report adjusted diluted EPS growth of 9.7%, 18.9%, and 3.2%, respectively, for their most recent quarters.


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