The Warsaw, Ind.-based company posted profits of $246.1 million, or $1.16 per share, on sales of $1.9 billion for the three months ended Sept. 30, 2020, for a -42.9% bottom-line slide on sales growth of 1.95%.
Adjusted to exclude one-time items, earnings per share were $1.81, 74¢ ahead of Wall Street, where analysts were looking for sales of $1.7 billion.
The company noted that a big factor in the outcome of its financial results was the COVID-19 pandemic and the pace of procedure volume and patient returns, which slowed toward the end of the three-month period and negatively affected overall performance.
“While the stronger-than-expected recovery of elective procedures in the third quarter was encouraging, we also remain focused on ZB’s strong operational execution, which continues to drive confidence in our underlying business,” Zimmer Biomet president & CEO Bryan Hanson said in a news release. “It is important to note that the challenges and fluidity around COVID-19 persist as we move into the end of the year. Still, we will continue to transform our business, invest for greater value and prioritize innovation to better position the company for accelerated growth over the long term.”
Zimmer Biomet said it is not offering financial guidance for the fourth quarter of 2020 as a result of uncertainties caused by the pandemic.
In the meantime, the company also revealed preliminary results from a trial of its MyMobility remote care platform in tandem with the Apple Watch. Results showed that those in the trial using MyMobility had fewer physical therapy visits than the control after 90 days.
ZBH shares were up 0.7% at $140.38 per share in midday trading today.