ZimVie 2025 Q1 Earnings Performance Improves as Net Income Increases 81%
Daily EarningsThursday, May 8, 2025 11:04 pm ET
3min readZimVie (ZIMV) reported its fiscal 2025 Q1 earnings on May 08th, 2025, with a notable improvement in net income. The company successfully reduced its net loss to $1.47 million, marking a significant 81% improvement compared to the previous year. ZimVie’s earnings per share (EPS) also showed progress, narrowing losses to $0.05 per share from $0.29 per share in 2024 Q1. For the full year 2025, ZimVie projects net sales between $445 million and $460 million, with adjusted EBITDA expected to range from $65 million to $70 million. This guidance demonstrates ZimVie's strategic efforts to regain momentum and enhance financial performance throughout the year.
Revenue
ZimVie reported a total revenue of $112 million for the first quarter of 2025, reflecting a 5.2% decrease from the $118.19 million achieved in the same quarter of 2024. The revenue was comprised of third-party, net sales totaling $112 million, illustrating the company's focus on external business transactions.
Earnings/Net Income
ZimVie narrowed its losses to $0.05 per share in Q1 2025, an 82.8% improvement from the $0.29 loss per share in Q1 2024. The net loss also decreased to $1.47 million from $7.76 million, marking an 81% reduction. This significant improvement in EPS indicates positive financial progress.
Price Action
The stock price of ZimVie edged up 2.22% during the latest trading day, increased by 1.66% over the most recent full trading week, and decreased by 1.61% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing ZimVie shares after revenue increases and holding for 30 days has consistently yielded strong returns over the past five years. Investors have seen an annualized return of 17.6% from 2020 to 2024, with 72% of the periods following revenue increases resulting in positive returns. The strategy experienced a maximum drawdown of 11.4% in 2022, which took six months to recover. Despite revenue fluctuations, this approach has demonstrated resilience and growth potential, offering a promising avenue for investors seeking stability and capital appreciation.
CEO Commentary
"We are proud to have entered 2025 with a strong focus on execution and operational diligence as we maintain a leading position with dental customers through innovation and education," said Vafa Jamali, President and Chief Executive Officer. He emphasized the company's commitment to enhancing operational efficiency and profitability improvements, while working towards a return to top-line growth despite a 5.2% decrease in net sales year-over-year. The CEO's outlook reflects optimism regarding future performance, bolstered by improved adjusted EBITDA and net loss reductions.
Guidance
ZimVie projects net sales for the full year 2025 to be between $445 million and $460 million. The company anticipates adjusted EBITDA in the range of $65 million to $70 million and adjusted EPS between $0.80 and $0.95. These expectations indicate a strategic effort to regain momentum and improve financial performance throughout the year.
Additional News
ZimVie announced significant changes to its Board of Directors, with CEO Vafa Jamali taking on the role of Chairman. David King, the Non-Executive Chair, will retire after the shareholders meeting on May 7, 2025. Vinit Asar, a board member since 2022, has been appointed as Lead Independent Director. Asar currently chairs the Quality, Regulatory, and Technology Committee and serves on various other committees. Under Jamali's leadership, ZimVie has transformed into a focused dental company, reduced debt, and streamlined operations, enhancing financial flexibility. The board is confident that Jamali will continue to drive value for stakeholders in his expanded role.
Revenue
ZimVie reported a total revenue of $112 million for the first quarter of 2025, reflecting a 5.2% decrease from the $118.19 million achieved in the same quarter of 2024. The revenue was comprised of third-party, net sales totaling $112 million, illustrating the company's focus on external business transactions.
Earnings/Net Income
ZimVie narrowed its losses to $0.05 per share in Q1 2025, an 82.8% improvement from the $0.29 loss per share in Q1 2024. The net loss also decreased to $1.47 million from $7.76 million, marking an 81% reduction. This significant improvement in EPS indicates positive financial progress.
Price Action
The stock price of ZimVie edged up 2.22% during the latest trading day, increased by 1.66% over the most recent full trading week, and decreased by 1.61% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing ZimVie shares after revenue increases and holding for 30 days has consistently yielded strong returns over the past five years. Investors have seen an annualized return of 17.6% from 2020 to 2024, with 72% of the periods following revenue increases resulting in positive returns. The strategy experienced a maximum drawdown of 11.4% in 2022, which took six months to recover. Despite revenue fluctuations, this approach has demonstrated resilience and growth potential, offering a promising avenue for investors seeking stability and capital appreciation.
CEO Commentary
"We are proud to have entered 2025 with a strong focus on execution and operational diligence as we maintain a leading position with dental customers through innovation and education," said Vafa Jamali, President and Chief Executive Officer. He emphasized the company's commitment to enhancing operational efficiency and profitability improvements, while working towards a return to top-line growth despite a 5.2% decrease in net sales year-over-year. The CEO's outlook reflects optimism regarding future performance, bolstered by improved adjusted EBITDA and net loss reductions.
Guidance
ZimVie projects net sales for the full year 2025 to be between $445 million and $460 million. The company anticipates adjusted EBITDA in the range of $65 million to $70 million and adjusted EPS between $0.80 and $0.95. These expectations indicate a strategic effort to regain momentum and improve financial performance throughout the year.
Additional News
ZimVie announced significant changes to its Board of Directors, with CEO Vafa Jamali taking on the role of Chairman. David King, the Non-Executive Chair, will retire after the shareholders meeting on May 7, 2025. Vinit Asar, a board member since 2022, has been appointed as Lead Independent Director. Asar currently chairs the Quality, Regulatory, and Technology Committee and serves on various other committees. Under Jamali's leadership, ZimVie has transformed into a focused dental company, reduced debt, and streamlined operations, enhancing financial flexibility. The board is confident that Jamali will continue to drive value for stakeholders in his expanded role.
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