Zimmer Holdings (NYSE: ZMH) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Zimmer Holdings met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly, and GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins dropped, net margins grew.

Revenue details
Zimmer Holdings booked revenue of $1.17 billion. The 26 analysts polled by S&P Capital IQ wanted to see sales of $1.16 billion. Sales were 2.9% higher than the prior-year quarter's $1.13 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.36. The 29 earnings estimates compiled by S&P Capital IQ predicted $1.34 per share on the same basis. GAAP EPS of $1.01 for Q4 were 392% higher than the prior-year quarter's $0.18 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 74.0%, 200 basis points worse than the prior-year quarter. Operating margin was 19.7%, 1,100 basis points worse than the prior-year quarter. Net margin was 13.4%, 1,030 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.14 billion. On the bottom line, the average EPS estimate is $1.30.

Next year's average estimate for revenue is $4.54 billion. The average EPS estimate is $5.25.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 609 members out of 639 rating the stock outperform, and 30 members rating it underperform. Among 242 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 235 give Zimmer Holdings a green thumbs-up, and seven 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 $63.52.

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