On Tuesday, Zimmer Holdings
- Sales grew 10.1% to $934 million, led by reconstructive segment revenue in the Americas and knee segment sales in Asia Pacific.
- Total diluted earnings grew 27.5% as higher profit margins and the lower number of shares outstanding boosted bottom-line results.
- Free cash flow for the quarter came in at $156 million, compared with reported net income of $245 million.
- Zimmer's stock is up about 50% from its 52-week lows and has the top rating -- five stars -- in Motley Fool CAPS.
(Figures in millions, except per-share data)
Income Statement Highlights
Avg. Est. |
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|---|
Sales |
$926 |
$934 |
$848 |
10.1% |
Net Profit |
-- |
$245 |
$200 |
22.6% |
EPS |
$0.99 |
$1.02 |
$0.80 |
27.5% |
Diluted Shares |
241 |
250 |
(3.5%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
77.77% |
78.10% |
(0.33) |
Operating Margin |
36.24% |
33.13% |
3.11 |
Net Margin |
26.21% |
23.53% |
2.68 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$268 |
$245 |
9.3% |
Accounts Rec. |
$626 |
$524 |
19.3% |
Inventory |
$638 |
$584 |
9.4% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Long-Term Debt |
$100 |
$82 |
22.1% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$247 |
$251 |
($3) |
Capital Expenditures |
$91 |
$60 |
$31 |
Free Cash Flow |
$156 |
$190 |
($34) |
Find out why Fools always follow the money.
Comparable companies:
-
Biomet
(NASDAQ:BMET) -
Stryker
(NYSE:SYK) -
Smith & Nephew
(NYSE:SNN) -
Wright Medical Group
(NASDAQ:WMGI) -
ArthroCare
(NASDAQ:ARTC)
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann is long shares of Biomet but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.