Orthopedic Implant Maker Zimmer Biomet Reports Better-Than-Expected Q3 Earnings, Updates Annual Forecasts

On Wednesday, Zimmer Biomet Holdings, Inc ZBH reported third-quarter adjusted EPS of $1.74, up from $1.65 a year ago, in line with the Street estimates.

The orthopedic giant reported sales of $1.82 billion, up 4% on a reported basis (+4.1% on constant currency), beating the consensus of $1.79 billion.

Knee product sales increased 5.5% to $745.1 million, and hip product sales 3.5% (+3.7% on constant currency) to $481.5 million.

Also Read: Zimmer Biomet To Stop Selling CPT Hip Implant System By End Of 2024 Due To High Fracture Risks

Sports Medicine products generated sales of $454.2 million, up 7.3%.

“We are pleased with the strong performance we delivered in the third quarter, despite our ERP implementation challenges,” said Ivan Tornos, Zimmer Biomet’s President and Chief Executive Officer. “

Operating margin remained unchanged at around 15%.

Net profit increased from $162.8 million to $249.2 million.

Guidance: Zimmer Biomet adjusted its 2024 adjusted EPS outlook from $8.00-$8.15 to $7.95-$8.05 compared to the consensus of $7.95.

The Warsaw, Indiana-based company expects 2024 revenue growth of 3.5%-4% versus the prior guidance range of 4%-5%.

On Monday, Zimmer Biomet unveiled its plans for the broad commercial launch of the Z1 Femoral Hip System (Z1 System) for total hip arthroplasty at the 2024 annual American Association of Hip and Knee Surgeons meeting.

The highly-anticipated Z1 Femoral Hip System, a triple-taper femoral system, pairs with the company’s G7 Acetabular System to provide surgeons with a total hip arthroplasty solution.

Price Action: ZBH stock is up 4.63% at $108.69 at last check Wednesday.

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