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.
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