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Research Alert: Zbh Q1 Tops Estimates, Fueled By Diversified Portfolio And Strategic Growth

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Zimmer Biomet delivered solid Q1 2026 results with net sales of $2.087B (+9.3% reported, +2.9% organic constant currency), $20M above the consensus view, and adjusted EPS of $2.09 (+15.5% Y/Y), beating the consensus by $0.23. Performance was broad-based across U.S. markets at $1.209B (+3.2% Y/Y organic) and international operations at $877.4M (+2.5% Y/Y organic). The diversified portfolio enabled resilient performance with knees at $828.6M (+1.8% organic), hips at $524.1M (+3.2% organic), and S.E.T. serving as a growth engine with sales at $562.2M, benefiting from the Paragon 28 acquisition. Management raised full-year EPS guidance to $8.40-$8.55 from $8.30-$8.45 while maintaining revenue guidance of 2.5%-4.5% reported growth. Key milestones in Q1 included mBos robotic system enrollment completion in India, first G7 Acetabular System case following FDA clearance, and Dr. Vigdorchik's appointment as Chief Science Officer.

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Research Alert: Strong Execution, Softer Outlook: Record Margins Amid Mixed Signals

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Itron's Q1 2026 results beat consensus with revenue of $587M (vs. $572M estimate) despite a 3% decline and non-GAAP EPS of $1.49 (vs. $1.24 estimate), though down $0.03 Y/Y. Record adjusted gross margin expanded 490 bps to 40.7%, fueled by strong execution and projects ahead of schedule. We view these results as validating the business mix evolution, with Outcomes growing 22% to $96M and service revenues surging 30% across all segments, while the new Resiliency Solutions segment contributed $16M. Q2 guidance of $560M-$570M revenue and $1.25-$1.35 EPS came well below consensus of $606M/$1.46, requiring management clarity on project timing explanations. We believe the declining backlog (down 6% to $4.4B) coupled with Networked Solutions revenue declines represent a worrisome double headwind worth monitoring. However, our long-term thesis remains intact as we see the revenue shift toward AI-powered grid analytics as positive, supported by robust $79M free cash flow and accelerating demand in the Outcomes segment.

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