Zimmer Biomet (NYSE:ZBH) missed the mark with its third-quarter results as ongoing supply issues plagued the orthopedics giant.
Warsaw, Ind.-based Zimmer Biomet posted profits of $98.8 million, or 48¢ per share, on sales of $1.82 billion for the three months ended Sept. 30, for a bottom-line slide of -37.8% and a sales decline of -0.8% compared with Q3 2016.
Adjusted to exclude one-time items, earnings per share were $1.72, 4¢ under the consensus expectation on Wall Street, where analysts were looking for sales of $1.83 billion.
“Our top line results remained challenged during the third quarter, due to the pace of supply recovery of certain key brands, as well as softened domestic market conditions and slower than anticipated sales recapture, particularly in the United States,” interim CEO & CFO Daniel Florin said in prepared remarks. “While we are not satisfied with our overall performance during the quarter, we remain confident in the company’s dedicated sales forces, the breadth of our portfolio and our strategic innovation pipeline. Looking forward, our global teams will continue to make progress towards increasing supply availability and enabling commercial execution, which we expect will translate into accelerated sales growth.”
Zimmer Biomet again lowered its outlook for the rest of the year, saying it now expects to post adjusted EPS of $8.01 to $8.07, down from $8.20 to $8.30 previously, on sales of $7.76 billion to $7.80 billion (compared with $7.80 billion to $7.87 billion previously).
Fourth-quarter adjusted EPS are forecast to be between $2.08 and $2.14 on sales of $2.01 billion to $2.05 billion, the company said.