Zimmer Biomet (ZBH) Q4 2023 earnings summary

Executive summary

• Q4 net sales were $1.940B, up 6.3% reported and 6.1% constant currency; FY sales were $7.394B, up 6.5% and 7.5%, respectively.

• Adjusted diluted EPS was $2.20 in Q4 and $7.55 for FY 2023; 2024 guidance calls for adjusted diluted EPS of $8.00–$8.15.

Financial highlights

• Q4 net earnings were $419.2M, or $458.1M adjusted; diluted EPS was $2.01, or $2.20 adjusted.

• FY net earnings were $1.024B, or $1.584B adjusted; diluted EPS was $4.88, or $7.55 adjusted.

• Q4 operating profit was $354.2M versus an operating loss of $28.3M in Q4 2022; FY operating profit was $1.278B versus $696.3M.

Outlook and guidance

• FY 2024 reported revenue growth guidance: 4.5%–5.5%; estimated FX impact: (0.5)%; constant-currency growth: 5.0%–6.0%.

• FY 2024 adjusted diluted EPS guidance: $8.00–$8.15; forward-looking non-GAAP guidance may differ materially from GAAP results.

• Restructuring actions are expected to generate approximately $200M in annualized cost savings exiting 2025.