The Warsaw, Ind.–based orthopedic device giant reported profits of $321.4 million, or $1.54 per share, off sales of $2.13 billion for the three months ended Dec. 31, 2019, versus a loss of –$902.5 million, or –$4.42 per share, off $2.07 billion for the same quarter a year before.
Adjusted to exclude one-time items, earnings per share were $2.30, three pennies ahead of The Street, where analysts were looking EPS of $2.27 on sales of $2.11 billion.
“In 2019 we continued to successfully execute our plan to reposition the company for success, driven by our global team’s focus on our One ZB mission and culture,” Zimmer Biomet CEO Bryan Hanson said in a news release.
The company for all of 2019 earned $1.13 billion, or $5.47 per share, off $7.98 billion in sales, versus a loss of –$379.3 million, or –$1.86 per share, off $7.93 billion in sales in 2018.
Zimmer Biomet has started reorganizing business units to increase efficiency and accelerate growth. Suketu Upadhyay, the company’s EVP and CFO, acknowledged to analysts during an earnings call today that the efforts are “leading to some reductions and redundancies.”
Zimmer Biomet is projecting adjusted EPS of $8.15–$8.45 in 2020.
Investors reacted by sending ZBH shares up 5.6%, to $156.77 apiece, by the close of trading today.