ZIMMER BIOMET Reports Third Quarter Earnings for FY2023
November 21, 2023
🌥️Earnings Overview
On November 7 2023, ZIMMER BIOMET ($NYSE:ZBH) reported their results for the third quarter of FY2023 which closed on September 30 2023. Total revenue for the quarter was USD 1753.6 million, a 5.0% year-over-year increase. Year-over-year, however, net income decreased by 16.1% to USD 162.8 million.
Share Price
At the opening of the stock market, ZIMMER BIOMET‘s stock opened at $106.1 but closed at $105.9, a decrease of 3.1% from the closing price of 109.3 from the previous day. This record-low performance came as a surprise to many investors, as analysts had predicted that the company would perform strongly in the quarter. The company attributed its poor performance to a number of factors such as weak demand for certain products, unfavorable currency exchange rates, and higher costs associated with new product launches. Despite the poor performance in the third quarter, ZIMMER BIOMET’s stock has experienced a strong year overall.
This highlights the resilience and strength of the company, and its ability to overcome difficult periods. Analysts remain cautiously optimistic about ZIMMER BIOMET’s future prospects. They believe that with continued innovation and strategic investments, the company will be able to continue its growth trajectory. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Zimmer Biomet. More…
| Total Revenues | Net Income | Net Margin |
| 7.28k | 474.3 | 10.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Zimmer Biomet. More…
| Operations | Investing | Financing |
| 1.24k | -670.6 | -825.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Zimmer Biomet. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 21.22k | 8.7k | 59.86 |
Key Ratios Snapshot
Some of the financial key ratios for Zimmer Biomet are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.0% | 19.5% | 12.4% |
| FCF Margin | ROE | ROA |
| 11.8% | 4.5% | 2.7% |
Analysis
GoodWhale is proud to present our analysis of ZIMMER BIOMET‘s fundamentals. Our Star Chart reveals that ZIMMER BIOMET is classified as a ‘cow’, meaning that it has a track record of paying out consistent and sustainable dividends. This means that this type of company may be of interest to income-seeking investors who are looking to generate returns from dividends. Furthermore, ZIMMER BIOMET exhibits strong performance metrics in dividend and profitability, while its performance in areas such as asset and growth are weak. We have also given a health score of 8/10 to ZIMMER BIOMET, considering its cashflows and debt. This indicates that it is capable of paying off debts and funding future operations. More…
Peers
The company operates in two segments, Reconstructive and Dental. It offers knee, hip, shoulder, elbow, hand and wrist, foot and ankle, and biologics products. The company also provides dental prosthetics, including dental implants and CAD/CAM systems; and digital equipment for dentists and laboratories. Zimmer Biomet has a market cap of $24.4 billion and is headquartered in Warsaw, Indiana.
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Summary
ZIMMER BIOMET reported its earnings results for the third quarter of FY2023 on November 7 2023, with total revenue increasing 5.0% year-over-year to USD 1753.6 million. Despite the revenue growth, net income decreased 16.1% to USD 162.8 million, leading to a sell-off in the company’s stock price the same day. For investors considering Zimmer Biomet, it is important to consider the company’s ability to turn around its declining profitability and its potential for revenue growth.
Additionally, Zimmer Biomet’s financial position should be evaluated, including its debt levels and cash flows. While Zimmer Biomet’s 3Q results were mixed, investors should assess its future prospects before making an investment decision.
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