The most recent earnings report from Zimmer Biomet Holdings, Inc. (NYSE:ZBH) was disappointing for shareholders. While the headline numbers were soft, we believe that investors might be missing some encouraging factors.

We've discovered 1 warning sign about Zimmer Biomet Holdings. View them for free.NYSE:ZBH Earnings and Revenue History May 12th 2025

The Impact Of Unusual Items On Profit

Importantly, our data indicates that Zimmer Biomet Holdings' profit was reduced by US$250m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect Zimmer Biomet Holdings to produce a higher profit next year, all else being equal.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On Zimmer Biomet Holdings' Profit Performance

Unusual items (expenses) detracted from Zimmer Biomet Holdings' earnings over the last year, but we might see an improvement next year. Because of this, we think Zimmer Biomet Holdings' earnings potential is at least as good as it seems, and maybe even better! And on top of that, its earnings per share have grown at an extremely impressive rate over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. So while earnings quality is important, it's equally important to consider the risks facing Zimmer Biomet Holdings at this point in time. While conducting our analysis, we found that Zimmer Biomet Holdings has 1 warning sign and it would be unwise to ignore it.

This note has only looked at a single factor that sheds light on the nature of Zimmer Biomet Holdings' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or  this list of stocks with significant insider holdings to be useful.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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