In This Article:
-
Revenue: $2.23 billion, an increase of 4.3% on a reported basis and 4.9% constant currency.
-
Constant Currency Revenue Growth: Nearly 5% for the fourth quarter of 2024.
-
Adjusted Earnings Per Share (EPS): $2.31, compared to $2.20 in the prior year.
-
Free Cash Flow: $1.055 billion for the year 2024.
-
Adjusted Operating Margin: 30.8%, 50 basis points higher than the prior year.
-
Gross Margin: 71.3%, lower than 2023.
-
Net Sales Growth by Segment: Knees 5.6%, Hips 4%, S.E.T. 8.4%.
-
Pricing: Positive 60 basis points, marking the fourth consecutive quarter of positive pricing.
-
2025 Financial Guidance: Constant currency revenue growth of 3% to 5%, adjusted EPS of $8.15 to $8.35.
-
Share Repurchases: $870 million for the full year 2024.
-
Cash and Cash Equivalents: $526 million at the end of the quarter.
-
Adjusted Tax Rate: 17.5% for the fourth quarter of 2024.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Zimmer Biomet Holdings Inc (NYSE:ZBH) reported nearly 5% constant currency sales growth in Q4 2024, marking the 12th consecutive quarter of mid-single-digit or better growth.
-
The company successfully managed to meet its original 2024 financial guidance despite challenges, delivering $8 in adjusted earnings per share and $1.05 billion in free cash flow.
-
Zimmer Biomet Holdings Inc (NYSE:ZBH) plans to launch over 50 new products in the next 36 months, with several being new to the world, indicating a strong focus on innovation.
-
The acquisition of Paragon 28 is expected to expand Zimmer Biomet Holdings Inc (NYSE:ZBH)'s offerings in the foot and ankle space, enhancing its growth potential in a $5 billion market.
-
Zimmer Biomet Holdings Inc (NYSE:ZBH) has a strong focus on operational excellence and innovation, with plans to improve margins and reduce inventory needs, thereby increasing free cash flow generation.
Negative Points
-
The company faced ERP implementation challenges in 2024, which impacted its operations and new product introductions.
-
Zimmer Biomet Holdings Inc (NYSE:ZBH) anticipates a significant FX headwind in 2025, which could impact reported revenue growth and earnings per share.
-
The guidance for 2025 reflects a more conservative approach, with expected constant currency revenue growth of 3% to 5%, which is lower than the previous year's growth.
-
The acquisition of Paragon 28 is expected to be dilutive to adjusted EPS by approximately 3% in 2025 and about 1% in 2026.
-
Zimmer Biomet Holdings Inc (NYSE:ZBH) faces challenges in maintaining consistent performance in the critical US market, necessitating improvements in its go-to-market strategy.