Orthopedic Giant Zimmer Biomet Q3 Earnings: Beats Estimates On Knee Procedures Strength, But Cuts Guidance

Zimmer Biomet Holdings Inc ZBH reported Q3 net sales of $1.754 billion, an increase of 5.0% Y/Y and 4.7% on a constant currency basis, almost in line with the consensus of $1.75 billion.

The company reported Q3 adjusted EPS of $1.65 compared to $1.58 a year ago and the consensus of $1.60.

Net earnings for the third quarter were $162.7 million, or $346.5 million on an adjusted basis.

Sales at the company's knees unit rose 7.5% to $706.3 million, and the hips business generated sales of $465.3 million, marginally down (0.6)%.

Guidance: Zimmer cut its full-year reported revenue forecast to growth of 6%-6.5% from 6.5%-7.0% earlier, citing a stronger foreign currency exchange impact.

In Q2, "We are raising our financial guidance for the rest of 2023 based on our confidence in our business performance," said Bryan Hanson, Chairman, President, and CEO of Zimmer Biomet.

The company reaffirms the adjusted EPS forecast of $7.47-$7.57 versus the consensus of $7.50.

Price Action: ZBH shares are down 4.04% at $104.88 at the last check Tuesday.

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