Zimmer Holdings (NYSE: ZMH) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Zimmer Holdings beat slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share contracted significantly.

Margins shrank across the board.

Revenue details
Zimmer Holdings recorded revenue of $1.17 billion. The 26 analysts polled by S&P Capital IQ expected a top line of $1.15 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.43. The 29 earnings estimates compiled by S&P Capital IQ forecast $1.44 per share. Non-GAAP EPS of $1.43 for Q2 were 6.7% higher than the prior-year quarter's $1.34 per share. GAAP EPS of $0.89 for Q2 were 27% lower than the prior-year quarter's $1.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 72.3%, 270 basis points worse than the prior-year quarter. Operating margin was 24.5%, 520 basis points worse than the prior-year quarter. Net margin was 13.0%, 610 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.06 billion. On the bottom line, the average EPS estimate is $1.27.

Next year's average estimate for revenue is $4.56 billion. The average EPS estimate is $5.75.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 582 members out of 610 rating the stock outperform, and 28 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 $80.73.

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