uploads///hospital _

Zimmer Biomet Holdings: Revenue Trends ahead of Its Q3 Earnings

By

Oct. 18 2018, Updated 3:46 p.m. ET

Revenue trends

Zimmer Biomet Holdings (ZBH) plans to release its third-quarter earnings on October 26. Wall Street analysts expect ZBH to generate revenues of $1.8 billion in the third quarter.

Zimmer Biomet Holdings’ net revenues rose 2.7% to reach $2.0 billion in the second quarter, compared with net revenues of $1.95 billion in the second quarter of 2017. The company generated net revenues of $4.0 billion in the first half of this year, compared with $3.9 billion in the first half of 2017.

Article continues below advertisement

Zimmer Biomet Holdings’ Knees, Hips, and S.E.T. (Surgical, Sports Medicine, Foot and Ankle, Extremities, and Trauma) segments contributed significantly to the company’s revenue growth. In the first half, Zimmer’s Knees, Hips, and S.E.T. segments reported ~2.6%, ~3.9%, and 3.7% YoY (year-over-year) growth, respectively.

The company’s strong sales growth in the Asia-Pacific and EMEA (Europe, Middle East, and Africa) regions pushed its revenue growth in the first half of this year. Zimmer Biomet’s product sales rose ~8.4% and ~7.0% YoY, respectively, in the Asia-Pacific and EMEA regions. ZBH generated revenues of $647.0 million in the Asia-Pacific region and $954.0 million in the EMEA region.

Peer comparisons

Among Zimmer Biomet Holdings’ (ZBH) peers in the medical devices market, Abbott Laboratories (ABT), Stryker Corporation (SYK), and Wright Medical Group (WMGI) generated revenues of $7.7 billion, $3.3 billion, and $205.4 million, respectively, in the second quarter. These revenues reflected YoY growth of ~12.11%, ~10.29%, and ~14.31%, respectively, for ABT, SYK, and WMGI.

Wall Street analysts expect Abbott Laboratories (ABT), Stryker Corporation (SYK), and Wright Medical Group (WMGI) to report third-quarter revenues of $7.9 billion, $3.3 billion, and $186.15 million, respectively. These revenues reflect estimated YoY growth of ~4.09%, ~8.51%, ~9.18%, respectively, for ABT, SYK, and WMGI.

The iShares US Medical Devices ETF (IHI) holds ~3.03% of its portfolio in Zimmer Biomet Holdings (ZBH), ~9.29% in Abbott Laboratories (ABT), ~5.1% in Stryker Corporation (SYK), and 0.68% in Wright Medical Group (WMGI).

Advertisement

More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Financials
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Consumer
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    Consumer
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.