NYSE$ZBH

Zimmer Biomet Holdings Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Zimmer Biomet's financial performance was impacted by the COVID-19 pandemic, resulting in decreased net sales and a net loss for the first quarter.

Zimmer Biomet reported a 9.7% decrease in net sales to $1.784 billion for the first quarter of 2020. The company experienced a net loss of $509 million, which includes goodwill impairment, but net earnings on an adjusted basis were $354 million. The COVID-19 pandemic significantly impacted elective procedure volumes, negatively affecting the company's performance.

  • First quarter net sales decreased by 9.7% to $1.784 billion, or 8.9% on a constant currency basis.
  • The company reported a diluted loss per share of $2.46, while adjusted diluted earnings per share were $1.70.
  • COVID-19 pandemic significantly impacted elective procedure volumes, negatively affecting performance.
  • The company refinanced $1.5 billion in debt, renegotiated its $1.5 billion revolver, and secured an additional $1.0 billion credit facility.

Headline financials

Total Revenue

$1.78B

Previous: $1.98B-9.7%
EPS (adj)

$1.70

Previous: $1.87-9.1%
Constant Currency Sales Growth

-8.9%

No prior period
Capital Expenditures

-$40.2M

Previous: -$37.8M-6.3%
Free Cash Flow

-$549M

Previous: $208M-363.4%
Net Income

-$509M

Previous: $246M-306.6%
Operating Income

-$456M

Previous: $350M-230.2%
Gross Profit

$1.3B

Previous: $1.42B-8.8%
Cash & Equivalents

$2.43B

Previous: $587M+314.7%
Total Assets

$25.5B

Previous: $24.3B+5.0%
Stock-Based Comp

$16.5M

Previous: $20.3M-18.7%

Revenue & EPS history

Zimmer Biomet · Revenue · Quarterly

$1.78B

Q1 2020-9.7%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Zimmer Biomet · $1.4B total across 3 segments · Q1 2020

  • Knees Net Sales
    $630M-9.3%
  • Hips Net Sales
    $433M-10.5%
  • S.E.T. Net Sales
    $334M-6.5%

Forward guidance

Zimmer Biomet expects the decline in elective procedure volumes observed in the final weeks of the first quarter to continue to have a significant negative impact in the second quarter of 2020. Given the uncertainty around the scope and duration of COVID-19 and its ongoing impact on the deferral of elective procedures, the Company is currently unable to quantify the expected impact on its results of operations, financial condition and cash flows, which could be material, for 2020 and is therefore not providing full-year financial guidance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.4%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-2.3%

Avg return

30 days after

42%

30 / 72 earnings

Positive

+11.9%

Q3 2020

Best reaction

-15.3%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%-10.5%-11.5%
Q4 2025+1.9%+7.5%+3.2%
Q3 2025-15.2%-14.0%-8.6%
Q1 2025-11.6%-7.0%-10.7%
Q4 2024-5.1%-8.6%-0.2%
Q3 2024+2.9%+4.4%+7.9%
Q2 2024-0.8%-2.3%-4.3%
Q1 2024+1.8%+1.6%-3.7%
Q4 2023-3.7%-3.4%-0.6%
Q3 2023-4.1%-3.5%+7.3%
Q2 2023-7.1%-8.6%-13.8%
Q1 2023+0.6%-0.7%-8.3%
Q4 2022+0.9%+2.6%-0.9%
Q3 2022-5.7%-3.9%+10.0%
Q2 2022+5.3%+3.2%-2.7%
Q1 2022+4.7%-0.3%+1.2%
Q4 2021-2.4%-5.4%-1.4%
Q3 2021-4.8%-9.7%-18.5%
Q2 2021-9.1%-8.6%-8.5%
Q1 2021-2.5%-3.1%-10.1%
Q4 2020-0.6%-0.2%-1.4%
Q3 2020+11.9%+7.2%+7.0%
Q2 2020-1.5%+2.7%+3.5%
Q1 2020-6.8%-7.8%+10.2%
Q4 2019+6.2%+5.3%-13.0%
Q3 2019+4.9%+5.5%+8.1%
Q2 2019+8.6%+9.1%+7.9%
Q1 2019-3.1%-2.8%-8.2%
Q4 2018+7.8%+7.9%+14.5%
Q3 2018-5.6%-7.0%-7.7%
Q2 2018+8.0%+7.1%+7.1%
Q1 2018+5.7%+5.8%+0.4%
Q4 2017-0.2%-1.3%-10.9%
Q3 2017-7.7%-10.1%-5.8%
Q2 2017-3.8%-6.5%-12.1%
Q1 2017-4.5%-3.7%-4.9%
Q4 2016+2.7%+2.4%+2.3%
Q3 2016-15.3%-15.9%-16.9%
Q2 2016+6.9%+6.4%+5.6%
Q1 2016-0.1%
Q4 2015-2.3%
Q3 2015+6.8%
Q2 2015-2.7%
Q1 2015-4.3%
Q4 2014-2.1%
Q3 2014+5.1%
Q2 2014-2.3%
Q1 2014+9.9%
Q4 2013+0.8%
Q3 2013-3.3%
Q2 2013+0.5%
Q1 2013+0.6%
Q4 2012-1.3%
Q3 2012+2.0%
Q2 2012-3.5%
Q1 2012-0.6%
Q4 2011-1.3%
Q3 2011+3.7%
Q2 2011-5.6%
Q1 2011+0.5%
Q4 2010+2.2%
Q3 2010+3.6%
Q2 2010-1.5%
Q1 2009-0.8%
Q1 2010+1.6%
Q4 2009-0.2%
Q3 2009+4.0%
Q3 2008+4.0%
Q4 2007-1.0%
Q2 2008-1.0%
Q2 2009-1.0%
Q4 2008-1.0%

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