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03Detailed Report
ZBH
Company ZBH
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 28, 2026
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Executive Summary
Zimmer Biomet delivered a solid QQ2 2024, reinforcing a multi-year growth trajectory across a diversified portfolio. Excluding FX, Q2 revenue rose 5.6% y/y to $1.94 billion, aided by strength in S.E.T., international markets, and a robust ROSA enabling technologies ecosystem. Management emphasized ongoing execution on the long-range plan: mid-single digit revenue growth, EPS growth of at least 1.5x revenue, and free cash flow outpacing EPS by at least 100 bps, with improvements in operating leverage supported by a restructuring program and productivity initiatives. The company highlighted meaningful progress in hip portfolio restoration (Z1 triple-taper stem, HAMMR surgical impactor, and advanced navigation) and asserted a pathway to regaining hip market share, complemented by a broader ROSA roadmap and new navigation modalities via OrthoGrid and Hip Insights partnerships. In the near term, Zimmer Biomet reiterated its 2024 guidance (5-6% constant-currency revenue growth; $8.00-$8.15 in adjusted EPS; $1.05b-$1.1b free cash flow) despite a higher USD headwind, signaling confidence in a stronger H2 cadence and continued ROSA penetration across geographies.
Key Performance Indicators
Revenue
Increasing
1.94B
QoQ: 2.79% | YoY: 3.87%
Gross Profit
Increasing
1.39B
71.49% margin
QoQ: 0.84% | YoY: 3.30%
Operating Income
Increasing
351.30M
QoQ: 32.12% | YoY: 6.58%
Net Income
Increasing
242.80M
QoQ: 40.84% | YoY: 15.84%
EPS
Increasing
1.18
QoQ: 40.48% | YoY: 18.00%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: Net sales $1.942B, up 3.9% on a reported basis and 5.6% in constant currency (ex-FX). US growth 3.5%; International growth 8.5% (Q2), with ROSA and S.E.T. contributing to international strength.
- Growth drivers: Global knees up 5.5% (US 0.8%; international 11.5%), hips up 2.8% (US 1.8%; international 3.7%), S.E.T. up 7.3%. Other category up 11.3% helped by ROSA and enabling technologies.
- Margins: Adjusted gross margin 71.6%; adjusted operating margin 28.5% (up ~100 bps YoY).
- Profitability: GAAP diluted EPS $1.18; adjusted diluted EPS $2.01 (YoY growth >10%).
- Cash flow: Operating cash flow $369M; free cash flow (managerial) ~$251M in Q2 (reported as $251M on the call; cashflow table shows $223M). End of quarter cash $420.1M.
- Balance sheet: Total assets $21.52B; total debt $5.834B; net debt about $5.414B; cash and equivalents $420.1M. Stockholders’ equity $12.741B.
- Guidance: Reaffirmed 2024 targets: 5-6% CC revenue growth; $8.00-$8.15 adjusted EPS; $1.05B-$1.10B free cash flow; currency headwinds expected to modestly pressure reported revenue growth (4-5%).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.94B
3.87%
2.79%
Gross Profit
1.39B
3.30%
0.84%
Operating Income
351.30M
6.58%
32.12%
Net Income
242.80M
15.84%
40.84%
EPS
1.18
18.00%
40.48%
Key Financial Ratios
Gross Profit Margin
Excellent
71.50%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
18.10%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
12.50%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.13%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.91%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.29
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Moderate
0.46
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Fair Value
22.44x
P/E ratio in line with market averages
Price to Book
Fair Value
1.71x
Price-to-book ratio reasonable for profitable companies
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