Zimmer Biomet (NYSE:ZBH) shares took a hit today as it lowered its guidance despite its third-quarter results beating The Street.
The Warsaw, Indiana-based company posted profits of $145.6 million, or 69¢ per share, on sales of more than $1.9 billion for the three months ended Sept. 30, 2021, for a 40% bottom-line slide on a sales decline of 0.3%.
Adjusted to exclude one-time items, earnings per share were $1.81, 5¢ ahead of Wall Street, where analysts were looking for sales of $1.9 billion.
“Despite the continued challenges and market pressures in the third quarter, we drove significant progress in the advancement of our business priorities and continued focus on execution to create value and deliver on our mission,” Zimmer Biomet Chair, President and CEO Bryan Hanson said in a news release. “Our underlying business remains strong, fueled by our transformation and the launch of new innovative products that can make a difference for our customers and for patients. I continue to be incredibly proud of our team for their dedication, resilience and performance during this challenging time.”
Zimmer Biomet said it now expects to log adjusted EPS between $7.32 and $7.47, compared with a range of $7.65 to $7.95 previously. The company updated its prior sales guidance for growth between 11.3% and 12.5%, dipping from a previously projected range of 14.5% to 16.5%.
ZBH shares were down 3.2% at $143.96 per share in early-morning trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 0.3%.