Zimmer Biomet (NYSE:ZBH) beat both the consensus forecast and its own guidance with its first-quarter results despite a more than 40% profit slide.
The Warsaw, Ind.-based orthopedics giant posted profits of $174.7 million, or 85¢ per share, on sales of $2.02 billion for the three months ended March 31, for a bottom-line slide of -41.6% on sales growth of 2.3%.
Adjusted to exclude one-time items, earnings per share were $1.91, 2¢ ahead of Wall Street, where analysts were looking for revenues of $1.98 billion; Zimmer’s own guidance had called for adjusted EPS of $1.84 to $1.91 on sales of $1.96 billion to $2.0 billion.
“As expected, in the first quarter our performance continued to reflect supply headwinds associated with key brands within our knee, hip and [surgical, extremities & trauma] portfolios, as well as the ongoing quality remediation work at our Warsaw north campus facility,” new president & CEO Bryan Hanson said in prepared remarks. “As we look out over the course of the next 18 to 24 months, we will stay laser-focused on taking the necessary actions to narrow our gap to market and drive sustained shareholder value. These actions include successfully driving our ongoing quality remediation program, restoring supply and scaling up the commercial launch of compelling new technologies, all of which remain on track.”
Zimmer Biomet said it expects to report adjusted EPS of $7.60 to $7.80 this year on sales growth of 1.5% to 3.5%.
