Zimmer Biomet Holdings, Inc. Q3 FY2023 results: revenue $1.8 billion, up 5.0% on the year

Zimmer Biomet Holdings, Inc. (ZBH) reported revenue of $1.8 billion for Q3 FY2023, the quarter ended 30 September 2023, up 5.0% on the same quarter a year earlier. Net income was $163 million, down 16.1% on the year, and diluted earnings per share $0.77. The figures are the company's own, from the 10-Q it filed with the SEC on 7 November 2023.

Revenue$1.8 billionup 5.0%

Net income$163 milliondown 16.1%

Diluted EPS$0.77

QuarterQ3 FY2023ended 30 September 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Revenue	1,754	n/a	n/a	n/a
Cost of revenue	519	n/a	n/a	n/a
Gross profit	1,235	n/a	n/a	n/a
Gross margin	70.4%	n/a	n/a
Research and development	117	n/a	n/a	n/a
Selling, general and administrative	675	n/a	n/a	n/a
Operating income	267	n/a	n/a	n/a
Operating margin	15.2%	n/a	n/a
Pre-tax income	219	n/a	n/a	n/a
Income tax	56.4	n/a	n/a	n/a
Effective tax rate	25.7%	n/a	n/a
Net income	163	n/a	n/a	n/a
Net margin	9.3%	n/a	n/a
Diluted EPS	$0.77	n/a	n/a	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Operating cash flow	338	n/a	n/a	n/a
Capital expenditure	84.3	n/a	n/a	n/a
Free cash flow	253	n/a	n/a	n/a
Free cash flow margin	14.4%	n/a	n/a
Depreciation and amortisation	241	n/a	n/a	n/a
Share-based compensation	15.6	n/a	n/a	n/a
Buybacks	0.0	n/a	n/a	n/a
Dividends paid	50.1	n/a	n/a	n/a
Dividend per share	$0.24	n/a	n/a	n/a
Diluted shares, weighted	210m	n/a	n/a	n/a
Shares outstanding at period end	209m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Total assets	21,217	n/a	n/a	n/a
Cash and equivalents	292	n/a	n/a	n/a
Receivables	1,341	n/a	n/a	n/a
Inventory	2,323	n/a	n/a	n/a
Goodwill	8,710	n/a	n/a	n/a
Total debt, as filed	5,500	n/a	n/a	n/a
Long-term debt	5,127	n/a	n/a	n/a
Shareholders' equity	12,511	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,754	1,940	1,889	1,942	1,824	2,023	1,909	2,077	2,001	2,244	2,087	2,177
Cost of revenue	519	539	512	554	539	587	550	592	559	792	576	636
Gross profit	1,235	1,401	1,377	1,388	1,286	1,436	1,359	1,485	1,442	1,451	1,510	1,542
Gross margin	70%	72%	73%	71%	70%	71%	71%	71%	72%	65%	72%	71%
R&D	117	113	108	109	112	108	111	113	116	119	103	105
SG&A	675	722	736	737	710	747	759	815	811	872	850	899
Operating income	267	354	266	351	280	389	292	300	351	154	373	326
Operating margin	15%	18%	14%	18%	15%	19%	15%	14%	18%	7%	18%	15%
Pre-tax income	219	284	215	302	230	289	229	225	279	98.0	301	255
Tax rate	26%	-48%	20%	20%	-8%	17%	20%	32%	17%	-41%	21%	22%
Net income	163	419	172	243	249	240	182	153	231	139	238	198
Net margin	9%	22%	9%	13%	14%	12%	10%	7%	12%	6%	11%	9%
Diluted EPS	$0.77	$2.00	$0.84	$1.18	$1.23	$1.18	$0.91	$0.77	$1.16	$0.71	$1.22	$1.03
Operating cash flow	338	588	228	369	396	506	383	378	419	517	359	448
Capital expenditure	84.3	62.8	55.1	52.7	44.5	51.5	44.6	50.1	55.0	74.8	36.3	54.2
Free cash flow	253	526	173	317	351	455	338	328	364	443	323	394
Buybacks	0.0	410	114	85.9	596	72.2	230	7.2	0.0	250	250	251
Dividends paid	50.1	50.2	49.4	49.4	49.2	48.0	47.8	47.5	47.5	47.5	46.9	46.5
Shares outstanding	209m	205m	206m	204m	199m	199m	198m	198m	198m	196m	193m	191m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 September 2023, filed 7 November 2023, accession 0000950170-23-060232: the filing on EDGAR. All of Zimmer Biomet Holdings, Inc.'s filings: EDGAR company page.

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