Zimmer Biomet will post its first-quarter financial results on May 11 with investors anticipating a revenue drop of roughly 10 percent due to the COVID-19 pandemic, according to Zacks Equity Research.
Seven details to know:
1. Preliminary estimates published on April 6 projected a decline in the range of 9.5 percent to 10.5 percent year-over-year. The company expects COVID-19 to negatively affect its second-quarter revenues too.
2. Orthopedic device companies have seen a significant drop in sales due to the widespread cessation of elective surgeries, with manufacturing and supply chains also disrupted due to international quarantine restrictions.
3. Zimmer Biomet's four legacy product categories — spine, knees, hips and dental — as well as its S.E.T. portfolio, devoted to sports medicine, surgical, extremities and trauma products, are expected to see a decrease in demand, which will affect quarterly revenues.
4. The company's spine and craniomaxillofacial line had been slowing in recent quarters due to unfavorable pricing, according to the Nasdaq report.
5. The ROSA portfolio, including the ROSA One Spine, ROSA Knee and ROSA Brain systems, had been performing well, which may have continued through the first half of the first quarter when the pandemic's impact was minimal.
6. Despite COVID-19, the company's hip and knee lines are projected to perform well, with the ROSA Knee system driving more than 50 percent of overall global knee growth in the last quarter.
7. The consensus mark for Zimmer Biomet's earnings of $1.49 per share projects a decrease of 20.3 percent, compared to the first quarter of 2019, according to the report.