Zimmer Biomet (NYSE:ZBH) stock is up today on fourth-quarter results that beat the consensus forecast.
Shares of ZBH rose more than 1% at $129.75 apiece by afternoon trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up more than 14%.
The Warsaw, Indiana–based orthopedic device maker posted losses of $130.5 million. That amounts to 62¢ per share on sales of $1.83 billion for the three months ended Dec. 31, 2022.
Zimmer Biomet’s losses continued to slide, dipping from $84 million this time last year. However, the company recorded sales growth of 2.7%.
Adjusted to exclude one-time items, earnings per share totaled $1.88. That comes in 5¢ ahead of expectations on Wall Street. Zimmer Biomet also beat The Street on sales, as analysts projected revenues of $1.76 billion.
Highlights in the quarter included the FDA clearance of the Persona OsseoTi keel tibia for cementless knee replacement. Just after the quarter ended, the company also announced plans to acquire soft tissue healing company Embody.
Zimmer Biomet is looking to achieve attractive growth
“We closed out the fourth quarter strong, driven by the solid execution of our team and meaningful innovation in our portfolio – all against a backdrop of continued recovery post-pandemic,” said Bryan Hanson, chair, president and CEO of Zimmer Biomet. “As we enter 2023, we expect macro pressures to continue, but also to stabilize, setting up ZB to achieve attractive growth and mark another key milestone in our transformation journey. We remain committed to building out our portfolio, delivering on our mission and creating value for all of our stakeholders.”
Zimmer Biomet expects 2023 revenues to grow between 1.5% and 3.5%. (Meanwhile, one of its top competitors — Stryker — says it’s entering 2023 with good momentum.) ZB forecasts adjusted EPS to range between $6.95 and $7.15.
BTIG analysts kept their Neutral rating on ZBH shares. But they also noted that Zimmer Biomet executed well through 2022, with growing enthusiasm for the company.