Zimmer Biomet (NYSE:ZBH) shares rose this morning on third-quarter results that topped the consensus forecast.
Shares of ZBH ticked up 1.3% at $113.25 apiece as the market opened today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — increased by 1.4%.
The Warsaw, Indiana-based orthopedic device maker posted profits of $194 million for the quarter. That amounts to 92¢ per share on sales of $1.67 billion for the three months ended Sept. 30, 2022.
Zimmer Biomet recorded a 33.2% bottom-line gain on a sales decline of 0.9%. The company’s knee and hip businesses both saw marginal sales increases (1.4% and 3.1%, respectively).
Meanwhile, sports medicine, extremities, trauma, craniomaxillofacial and thoracic (S.E.T.) sales decreased 6.4%, and the “other” category dropped 7.2%, contributing to the overall sales dip.
Adjusted to exclude one-time items, earnings per share came in at $1.58. That beats Wall Street expectations by 3¢. Sales also reported a beat as analysts projected $1.63 billion in revenues.
“We had another solid quarter, bolstered by our team’s execution and continued COVID recovery. Our performance and successful navigation of current macro pressures further increase our confidence and enable us to raise our financial guidance,” Zimmer Biomet Chair, President and CEO Bryan Hanson said in a news release. “We believe that our strategy is working and our innovation pipeline and product portfolio position Zimmer Biomet to serve our customers and patients and deliver growth and value for our shareholders.”
Zimmer Biomet increased the lower end of both its revenue and adjusted EPS guidance. It now projects sales growth between 0% and 1%, up from a decline of 1% to a gain of 1%. The company’s adjusted EPS projection falls between $6.80 and $6.90. That marks a slight increase from the previous range of $6.70 to $6.90.
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