Zimmer Biomet reports solid first-quarter performance across its geographic regions. However, contraction in its operating margin is a concern.
Zimmer Biomet Holdings, Inc. (NYSE:ZBH ) Q1 2025 Earnings Conference Call May 5, 2025 8:30 AM ET Company Participants David DeMartino - SVP, IR Ivan Tornos - President & CEO Suketu Upadhyay - CFO & EVP, Finance, Operations & Supply Chain Conference Call Participants Robbie Marcus - JPMorgan David Roman - Goldman Sachs Chris Pasquale - Nephron Matthew O'Brien - Piper Sandler Matthew Taylor - Jefferies Larry Biegelsen - Wells Fargo Josh Jennings - TD Cowen Travis Steed - Bank of America Joanne Wuensch - Citi Caitlin Cronin - Canaccord Genuity Richard Newitter - Truist Securities Shagun Singh - RBC Rick Wise - Stifel Jeff Johnson - Baird Mike Matson - Needham & Company Operator Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet First Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded today, May 5, 2025.
While the top- and bottom-line numbers for Zimmer (ZBH) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Zimmer Biomet (ZBH) came out with quarterly earnings of $1.81 per share, beating the Zacks Consensus Estimate of $1.76 per share. This compares to earnings of $1.94 per share a year ago.
Get a deeper insight into the potential performance of Zimmer (ZBH) for the quarter ended March 2025 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
Zimmer Biomet is strategically expanding its global presence to address the huge demand in the musculoskeletal space.
Zimmer Biomet's robust Knee business appears promising. However, a dull macroeconomic condition adds to the worry.
Among Zimmer Biomet's knee solutions featured at the AAOS 2025, the newly cleared Persona Revision SoluTion Femur is expected to draw attention.
Zimmer Biomet is strategically expanding its global presence to address the huge demand in the musculoskeletal space.
Zimmer Biomet is suffering due to macroeconomic uncertainties, pricing pressure and unfavorable currency fluctuations.
Zimmer Biomet shares at $105 reveal value at 13 times adjusted earnings, as the company continues to grow despite a GLP-1 drug overhang. The 2015 Zimmer Biomet merger hasn't been fully delivered, but recent organic growth and M&A actions are promising, with mid-single digit sales growth projected. The $1.2 billion Paragon 28 acquisition enhances foot and ankle orthopedics, despite short-term EPS dilution, and boosts Zimmer Biomet's growth profile.
Zimmer Biomet benefits from its diversified portfolio outside of core orthopedics and the company's strategic investments in attractive, higher-growth segments.