Warsaw, Ind.-based Zimmer Biomet posted profits of $299.4 million, or $1.47 per share, on sales of $1.98 billion for the 3 months ended March 31, for bottom-line growth of 175.2% on sales growth of 3.8% compared with Q1 2016. Adjusted to exclude 1-time items, earnings per share were $2.13, 2¢ ahead of The Street, where analysts were looking for sales of $1.96 billion.
But the company also lowered its guidance for the rest of the year, saying it now expects adjusted EPS of $8.50 to $8.60, compared with its prior outlook of $8.50 to $8.68. Sales are now pegged at $7.84 billion to $7.92 billion, compared with $7.86 billion to $7.93 billion previously.
That pushed ZBH shares down some -7.4% to $116.03 apiece today in mid-morning activity.
“Zimmer Biomet delivered 1st-quarter revenue and adjusted earnings growth consistent with our expectations, as we positioned the company for sales acceleration in the 2nd half of the year,” president & CEO David Dvorak said in prepared remarks. “During the quarter, we made progress towards improving our global supply chain throughput, in concert with ongoing, focused investments to harmonize and optimize our global manufacturing and quality systems. We will continue driving these priorities as we progress through the balance of 2017, while leveraging our specialized sales channels and advancing the commercialization of differentiated clinical offerings.”