Zimmer Holdings's Upcoming Earnings: What You Need To Know

Zimmer Holdings (NYS: ZMH) is expected to report Q4 earnings on Jan. 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Zimmer Holdings's revenues will increase 0.8% and EPS will expand 10.3%.

The average estimate for revenue is $1.18 billion. On the bottom line, the average EPS estimate is $1.50.


Revenue details
Last quarter, Zimmer Holdings logged revenue of $1.03 billion. GAAP reported sales were 0.6% lower than the prior-year quarter's $1.03 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.15. GAAP EPS of $1.02 for Q3 were 1.0% higher than the prior-year quarter's $1.01 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 75.1%, 50 basis points worse than the prior-year quarter. Operating margin was 27.9%, 120 basis points better than the prior-year quarter. Net margin was 17.4%, 120 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $4.47 billion. The average EPS estimate is $5.28.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 598 members out of 625 rating the stock outperform, and 27 members rating it underperform. Among 217 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 208 give Zimmer Holdings a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zimmer Holdings is outperform, with an average price target of $68.54.

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The article Zimmer Holdings's Upcoming Earnings: What You Need To Know originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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