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Zimmer Biomet (ZBH) to report earnings tomorrow: here is what to expect
Zimmer Biomet, a medical device company, reports earnings Wednesday before the market opens. Last quarter it beat revenue expectations with $2.18 billion, up 4.8% year on year. This quarter, the market expects revenue growth of 1.9% year on year, slower than the 9.7% increase a year earlier.
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What happened
Zimmer Biomet, a medical device company, reports earnings Wednesday before the market opens. Last quarter it beat revenue expectations with $2.18 billion, up 4.8% year on year. This quarter, the market expects revenue growth of 1.9% year on year, slower than the 9.7% increase a year earlier.
Confirmed
Global impact / market context
Slower expected growth means investors will compare results with the 1.9% estimate. A miss could weigh on the stock, while a beat may support it. Last quarter's beat shows the company can exceed expectations, but the smaller expected rise sets a lower bar for surprises.
Analyst inference
Peers already reported mixed results: CONMED posted flat revenue and its stock was unchanged, while Intuitive Surgical beat estimates but fell 2.3%. This suggests strong results do not always lift shares. Analysts reconfirmed estimates over the last 30 days, implying they expect steady performance.
Analyst inference
What to watch
- Watch whether reported revenue grows near the 1.9% year-on-year expectation, since that is the figure analysts currently forecast for this quarter. Confirmed
- Compare the company's full-year earnings per share guidance with analyst estimates, which means the profit attributed to each share, to see if management raises or lowers its outlook. Proposed
- Watch the stock reaction for clues on investor positioning, since peers showed that even a revenue beat, like Intuitive Surgical's, can be followed by a share price decline. Analyst inference