The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Zimmer Holdings met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew.
Gross margins grew, operating margins expanded, net margins contracted.
Zimmer Holdings reported revenue of $1.18 billion. The 27 analysts polled by S&P Capital IQ predicted a top line of $1.18 billion on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $1.17 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.51. The 30 earnings estimates compiled by S&P Capital IQ averaged $1.49 per share. GAAP EPS of $0.88 for Q4 were 1.1% higher than the prior-year quarter's $0.87 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 74.7%, 50 basis points better than the prior-year quarter. Operating margin was 29.7%, 990 basis points better than the prior-year quarter. Net margin was 12.9%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.17 billion. On the bottom line, the average EPS estimate is $1.44.
Next year's average estimate for revenue is $4.63 billion. The average EPS estimate is $5.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 594 members out of 621 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 $70.52.
Is Zimmer Holdings the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add Zimmer Holdings to My Watchlist.
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. The Motley Fool owns shares of Zimmer Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.