Zimmer Biomet (NYSE:ZBH) Announces Quarterly Earnings Results

Key Points

• Zimmer Biomet reported quarterly earnings of $2.07 per share, exceeding expectations of $1.98 and marking a year-over-year revenue increase of 7.0% to $2.08 billion.
• The company's future earnings guidance for FY 2025 has been updated to an EPS range of 8.100-8.300.
• Zimmer Biomet has announced a quarterly dividend of $0.24 per share, with a 1.0% dividend yield and a payout ratio of 21.24%.

Zimmer Biomet (NYSE:ZBH - Get Free Report) released its quarterly earnings results on Thursday. The medical equipment provider reported $2.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.98 by $0.09, Zacks reports. The business had revenue of $2.08 billion for the quarter, compared to analyst estimates of $2.06 billion. Zimmer Biomet had a net margin of 10.51% and a return on equity of 12.76%. The business's revenue for the quarter was up 7.0% on a year-over-year basis. During the same period in the previous year, the company earned $2.01 earnings per share. Zimmer Biomet updated its FY 2025 guidance to 8.100-8.300 EPS.

Zimmer Biomet Price Performance

Shares of NYSE ZBH traded up $0.71 during trading on Friday, hitting $99.14. 2,459,698 shares of the company were exchanged, compared to its average volume of 1,852,686. The company has a market cap of $19.61 billion, a price-to-earnings ratio of 24.12, a PEG ratio of 2.30 and a beta of 0.68. Zimmer Biomet has a 1 year low of $89.22 and a 1 year high of $116.71. The firm's fifty day moving average price is $93.34 and its 200 day moving average price is $99.80. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.87 and a quick ratio of 1.46.

Zimmer Biomet Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Thursday, June 26th were given a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Thursday, June 26th. Zimmer Biomet's dividend payout ratio (DPR) is 21.24%.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on ZBH shares. Morgan Stanley cut their price objective on shares of Zimmer Biomet from $115.00 to $95.00 and set an "equal weight" rating on the stock in a research note on Tuesday, May 6th. Truist Financial set a $101.00 target price on shares of Zimmer Biomet in a research note on Tuesday, May 6th. UBS Group set a $96.00 price target on shares of Zimmer Biomet and gave the stock a "sell" rating in a research report on Friday. The Goldman Sachs Group lowered their price target on shares of Zimmer Biomet from $120.00 to $104.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 6th. Finally, Robert W. Baird dropped their price objective on shares of Zimmer Biomet from $130.00 to $115.00 and set an "outperform" rating for the company in a report on Tuesday, May 6th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and nine have given a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $111.44.

Insider Activity at Zimmer Biomet

In related news, insider Sang Yi sold 1,000 shares of the business's stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $95.00, for a total value of $95,000.00. Following the sale, the insider directly owned 20,424 shares in the company, valued at $1,940,280. The trade was a 4.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 1.39% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in Zimmer Biomet stock. Brighton Jones LLC bought a new position in shares of Zimmer Biomet Holdings, Inc. (NYSE:ZBH - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 1,936 shares of the medical equipment provider's stock, valued at approximately $204,000. Institutional investors own 88.89% of the company's stock.

About Zimmer Biomet

Zimmer Biomet Holdings, Inc, together with its subsidiaries, operates as a medical technology company worldwide. The company designs, manufactures, and markets orthopedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, extremities, and trauma products; craniomaxillofacial and thoracic products comprising face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest to facilitate healing or reconstruction after open heart surgery, trauma, or for deformities of the chest.

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