Why Is Zimmer (ZBH) Up 5.3% Since Last Earnings Report?

It has been about a month since the last earnings report for Zimmer Biomet (ZBH). Shares have added about 5.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Zimmer due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.Zimmer Biomet Q3 Earnings Beat, Revenues Miss EstimatesZimmer Biomet posted third-quarter 2025 adjusted earnings per share of $1.90, which beat the Zacks Consensus Estimate by 1.06%. The adjusted figure rose 9.2% year over year.The quarter’s adjustments included certain amortization, restructuring and other cost reduction initiatives, inventory and manufacturing-related charges and European Union Medical Device Regulation-related charges, among others.On a reported basis, the company registered earnings of $1.16 per share compared with $1.23 in the year-ago period.Q3 RevenuesThird-quarter net sales of $2.00 billion increased 9.7% (up 8.6% at constant exchange rate or CER) year over year. The figure missed the Zacks Consensus Estimate by 0.4%.Revenues by GeographyDuring the third quarter, sales generated in the United States totaled $1.16 billion (up 10.6% year over year), while International sales grossed $837.3 million (up 8.5% year over year on a reported basis and 5.9% at CER).Our model projected revenues of $1.16 billion from the United States and $834 million from International.Segmental Analysis of RevenuesThe company currently reports under four product categories — Knees, Hips, S.E.T. (Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic) and Technology & Data, Bone Cement and Surgical.Sales in the Knees unit improved 5.3% year over year at CER to $792.4 million. Our model estimate was pegged at $820.5 million.Hips sales grew 3.8% year over year at CER to $506.2 million. Our model estimate was $512.2 million for the same.Revenues in the S.E.T. unit rose 18.2% year over year at CER to $541.5 million. Our model estimate was $498.3 million.Technology & Data, Bone Cement and Surgical (historically referred to as "Other") revenues rose 11.3% to $161.3 million at CER in the third quarter. Our model estimate was $166.5 million.Margin PerformanceAdjusted gross margin, after excluding the impact of intangible asset amortization, was 72.1%, an expansion of 158 basis points (bps) year over year. Selling, general and administrative expenses rose 14.3% to $811.4 million. Research and development expenses rose 3.9% to $115.9 million. Adjusted operating margin expanded 27 bps to 25.7%.Cash PositionZimmer Biomet exited the third quarter with cash and cash equivalents of $1.29 billion compared with $525.5 million at the end of the second quarter of 2025.Cumulative net cash provided by operating activities at the end of the third quarter was $1.18 billion compared with $993.1 million in the year-ago period.Updated 2025 OutlookZimmer Biomet updated its financial guidance for 2025.Reported revenue growth guidance was reiterated in the band of 6.7-7.7%. The upper limit of 2025 constant currency revenue growth was reduced. The new range is 6.2% - 6.7% (earlier range was 6.2% - 7.2%). The Zacks Consensus Estimate for revenues is pegged at $8.22 billion.Adjusted earnings per share guidance for the full year was reiterated in the range of $8.10-$8.30.The Zacks Consensus Estimate for 2025 adjusted earnings per share is pegged at $7.95.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.VGM ScoresAt this time, Zimmer has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Zimmer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerZimmer belongs to the Zacks Medical - Products industry. Another stock from the same industry, Envista (NVST), has gained 3.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.Envista reported revenues of $669.9 million in the last reported quarter, representing a year-over-year change of +11.5%. EPS of $0.32 for the same period compares with $0.12 a year ago.Envista is expected to post earnings of $0.32 per share for the current quarter, representing a year-over-year change of +33.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Envista. Also, the stock has a VGM Score of B.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zimmer Biomet Holdings, Inc. (ZBH): Free Stock Analysis Report Envista Holdings Corporation (NVST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks