The tax reforms enacted last year created huge fourth-quarter and full-year profit gains for Zimmer Biomet (NYSE:ZBH), but the orthopedics giant still only managed to meet Wall Street’s earnings expectations despite logging sales beats for both periods.
Warsaw, Ind.-based Zimmer Biomet posted profits of $1.26 billion, or $6.16 per share, on sales of $2.07 billion for the three months ended Dec. 31, 2017, for a whopping 1,706% bottom-line gain on sales growth of 3.0% compared with Q4 2016.
Adjusted to exclude one-time items, earnings per share were $2.10, in line with The Street, where analysts were looking for sales of $2.03 billion.
Full-year profits were $1.84 billion, or $9.03 per share, on sales of $7.82 billion, for a 501.4% profit gain on sales growth of 1.8% compared with 2016. Adjusted EPS came in at $8.03, also in line with analysts’ consensus forecast, which called for sales of $7.78 billion.
“Since joining the company last month, I have been performing a thorough review of the business. My immediate priorities are to improve Zimmer Biomet’s execution and address a number of near-term challenges that have impacted, and will continue to impact, our performance. With that said, I fully believe in the power of the Zimmer Biomet global brand and portfolio of products, and I am confident that with sound strategy and enhanced execution we can drive sustained shareholder value,” president & CEO Bryan Hanson said in prepared remarks.
Zimmer Biomet said it expects to report first-quarter adjusted EPS of $1.84 to $1.91 on sales of $1.955 billion to $1.995 billion.
