Zimmer Biomet (NYSE:ZBH) shares gained today after the orthopedics giant reported 3rd-quarter results that topped expectations and raised its earnings outlook for the rest of the year.
Warsaw, Ind.-based Zimmer Biomet posted profits of $22.2 million, or 11¢ per share, on sales of $1.76 billion for the 3 months ended Sept. 30, for a bottom-line slide of -87.2% on sales growth of 59.3% compared with Q3 2014.
Adjusted to exclude 1-time items, earnings per share were $1.64, 8¢ ahead of expectations on Wall Street, where analysts were looking for sales of $1.76 billion.
“We are pleased with the achievements of our global teams during Zimmer Biomet’s 1st quarter as a combined company,” president & CEO David Dvorak said in prepared remarks. “In an operating period marked by significant progress in the execution of our sales channel integration, we generated sequential top-line improvement and strong earnings growth. As we exit this year and progress through 2016, we are well positioned to continue improving revenue growth and delivering on our synergy commitments.”
Zimmer Biomet raised its earnings forecast for the rest of the year, saying adjusted EPS are now expected to be $6.83 to $6.87, up from prior guidance of $6.65 to $6.80. Zimmer attributed the raised guidance to better-than-expected synergies from the merger of Zimmer and Biomet.
The company cut its sales outlook, however, saying it expects constant-currency revenue growth of 1.0% to 1.5%, compared with 1.5% to 2.0% previously.
Zimmer Biomet also said it’s putting a share repurchasing program back in place, with $599.5 million left in the kitty for stock buybacks.
ZBH shares were up 6.9% to $104.57 in mid-morning trading today.