Zimmer Biomet (NYSE:ZBH) reported second-quarter results today topped the consensus forecast — but ZB also lowered the bottom end of its guidance.
ZBH shares were down more than –5% to $154.23 apiece near the close of trading. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down slightly.
The Warsaw, Ind.–based orthopedic device company posted profits of $142.5 million, or 67¢ per share, on sales of just over $2 billion for the three months ended June 30, 2021, upping its bottom line from losses of -$208.6 million this time last year on sales growth of 65.3%.
Adjusted to exclude one-time items, earnings per share were $1.90, 3¢ ahead of Wall Street, where analysts were looking for sales of just shy of $2 billion.
“Our performance in the second quarter improved meaningfully from the first quarter 2021 across all regions and product categories as recovery from the global pandemic continued to take hold. While we anticipate some ongoing COVID-19 pressure, we expect continued improvement in procedure volume recovery through the second half of 2021,” Zimmer Biomet chairman, president & CEO Bryan Hanson said in a news release.
“Against this backdrop, Zimmer Biomet has continued to execute, investing in our business, expanding our portfolio and developing and launching innovative products designed to improve mobility and health,” Hanson said. “This execution enables ZB to build and deliver value for our customers and shareholders and to move our mission forward for the patients we ultimately serve.”
Zimmer Biomet said it now expects to log full-year adjusted EPS of between $7.60 and $8, compared with a range of $7.65 to $7.95 previously. The company projects revenue growth between 14% and 17%, representing a change from the previous range of 14.5% and 16.5%.
Needham & Co. stuck by its Strong Buy rating for ZBH shares. “Management continues to believe the procedure volume backlog remains large but now expects this to take longer to work through. We still believe that ZBH can reach, and sustain, mid-single-digit revenue growth and drive increased margin improvement,” said senior research analyst Mike Matson.