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Analyzing Zimmer Biomet’s Earnings Trends

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Earnings trends

Zimmer Biomet Holdings’ (ZBH) net earnings were nearly flat in the second quarter, compared to the second quarter of 2017. Zimmer Biomet reported net earnings of $185.0 million in the second quarter, compared to $184.2 million in the second quarter of 2017. 

Zimmer Biomet reported diluted EPS of $0.90 in the second quarter, which was unchanged from its EPS in the second quarter of 2017. Wall Street analysts expect Zimmer Biomet Holdings to report net income and EPS of $208.13 million and $0.90, respectively, in the third quarter. 

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Expense trends

Wall Street analysts expect Zimmer Biomet Holdings’ (ZBH) cost of product sales to reach $515.44 million in the third quarter. Zimmer Biomet Holding’s net expenditures in the cost of product sales, excluding intangible asset amortization, totaled $583.7 million in the second quarter. ZBH’s net expenditures totaled $527.7 million in the second quarter of 2017. 

Zimmer Biomet’s expenditures in intangible asset amortization totaled $149.5 million, which is nearly flat compared to $147.7 million in the second quarter of 2017.

Analysts expect Zimmer Biomet to report R&D (research and development) and SG&A (selling, general, and administrative) expenses of $98.3 million and $792.10 million, respectively, in the third quarter. Zimmer Biomet reported R&D and SG&A expenditures of $99.1 million and $791.3 million, respectively, in the second quarter, reflecting ~7.0% and ~5.0% YoY growth. Zimmer Biomet’s R&D and SG&A expenditures totaled $194.8 million and $1.6 billion, respectively, in the first half, reflecting ~6.0% and ~4.0% YoY growth.

Zimmer Biomet reported net operating expenses of $1.71 billion in the second quarter, compared to $1.67 billion in the second quarter of 2017, reflecting 3.0% YoY growth. Zimmer Biomet’s net operating expenses grew from $3.3 billion in the first half of 2017 to $3.4 billion in the first half of this year. 

Zimmer Biomet Holdings (ZBH) comprises ~0.72% of the Health Care Select Sector SPDR Fund’s (XLV) portfolio.

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