Zimmer Holdings Inc.
) is scheduled to report its fourth-quarter 2013 results before
the opening bell on Jan 30. Last quarter, the company delivered a
positive earnings surprise of 0.81%. Let's see how things are
shaping up for this announcement.
Factors at Play
Barring the second quarter, Zimmer had posted positive
earnings surprises in all of the last four quarters with an
average beat of 0.54%.
In order to streamline its business, Zimmer is continuing with
its global restructuring program. A number of new products are
slated for launch that will have a positive impact on the top
line. After several quarters of challenging market conditions in
the form of reduced procedure volume and pricing pressure, the
company is gradually witnessing stability in the global
musculoskeletal market with better-than-expected sales growth in
However, pricing continues to remain a major headwind for
Zimmer. Moreover, with continued weakening of yen, the company is
expected to face negative currency impact on its sales. Earlier,
while updating its growth outlook for 2013, Zimmer expected
currency movement to lower revenues by 1.5% resulting in 2.0%
revenue growth on a reported basis.
Our proven model does not conclusively show that Zimmer is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for
this to happen. That is not the case here as you will see
Earnings ESP for Zimmer is 0.00% since the Most Accurate estimate
stands at $1.61, in line with the Zacks Consensus Estimate.
Zimmer's Zacks Rank #3 (Hold) when combined with a 0.00% ESP,
makes surprise prediction difficult.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements,
i.e., a positive Zacks Earnings ESP and a Zacks Rank #1, #2 or
) has an earnings ESP of +14.29% and holds a Zacks Rank #2 (Buy).
DexCom is expected to report its fourth-quarter earnings on Feb
Cardinal Health, Inc.
) has an earnings ESP of +2.41% and holds a Zacks Rank #1 (Strong
Buy). Cardinal Health will report second-quarter fiscal 2014
earnings on Jan 30.
Symmetry Medical, Inc.
) has an earnings ESP of +14.29% and holds a Zacks Rank #3.
Symmetry Medical will be reporting fourth-quarter earnings on Feb
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