Zimmer Biomet Holdings, Inc. (ZBH – Analyst Report), the consolidated company formed through the merger of Zimmer Holdings and Biomet, is scheduled to report its third-quarter 2015 results, before the opening bell on Oct 29.
Last quarter, despite severe currency headwinds, Zimmer Biomet delivered better-than-expected performance, squarely beating the Zacks Consensus Estimate.
Currently, Zimmer Biomet’s trailing four-quarter average earnings beat stands at 2.24%. Let’s see how things are shaping up for this announcement. 
Why a Likely Positive Surprise?
Our proven model shows that the company is likely to beat earnings because it has the right combination of two key ingredients.
Zacks ESP: Zimmer Biomet has an Earnings ESP of +2.58%. That is because the Most Accurate Estimate is $1.59 while the Zacks Consensus Estimate is pegged lower at $1.55. This is a meaningful and leading indicator of a likely positive earnings surprise.
Zacks Rank: Zimmer Biomet has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Zimmer Biomet’s Zacks Rank #3 and +2.58% ESP makes us confident of a positive earnings beat at the company.
What’s Driving the Better-than-Expected Earnings?