Zimmer Biomet Holdings, Inc. (ZBH), headquartered in Warsaw, Indiana, designs, manufactures, and sells medical equipment. Valued at $21.8 billion by market cap, the company offers orthopedic, dental, and spinal reconstructive implants, as well as bone cement and related surgical products. The medical device giant is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Feb. 6.

Ahead of the event, analysts expect ZBH to report a profit of $2.30 per share on a diluted basis, up 4.6% from $2.20 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.

For the full year, analysts expect ZBH to report EPS of $7.99, up 5.8% from $7.55 in fiscal 2023. Its EPS is expected to rise 7.3% year over year to $8.57 in fiscal 2025.

ZBH stock has underperformed the S&P 500’s ($SPX) 26.5% gains over the past 52 weeks, with shares down 10.4% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) marginal gains over the same time frame.

ZBH's underperformance stems from staffing shortages, supply chain disruptions, trade and geopolitical challenges, high interest rates, and challenges in the dental treatment and hip categories. Additionally, reimbursement challenges and supply shortages are impacting ZBH’s restorative therapies, and sports and trauma businesses, affecting its financial performance. 

On Oct. 30, ZBH shares closed up more than 5% after reporting its Q3 results. Its adjusted EPS of $1.74 missed Wall Street expectations of $1.75. The company’s revenue was $1.82 billion, beating Wall Street forecasts of $1.8 billion. ZBH expects full-year adjusted EPS to be between $7.95 and $8.05.

Analysts’ consensus opinion on ZBH stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 28 analysts covering the stock, eight advise a “Strong Buy” rating, two suggest a “Moderate Buy,” 16 give a “Hold,” and two recommend a “Strong Sell.” ZBH’s average analyst price target is $123.56, indicating a potential upside of 12.8% from the current levels.