Zimmer posted profits of $165.5 million, or 96¢ per share, on sales of $1.11 billion during the 3 months ended Sept. 30, for bottom-line growth of 7.2% on sales growth of 3.0% compared with Q3 2013.
Adjusted to exclude 1-time items, earnings per share were $1.35, a full 5¢ above expectations on Wall Street.
Sales of Zimmer’s knee implants rose 6% on a constant currency basis, led by 10% growth in Europe. Hip implant sales were up 3% worldwide but flat in the U.S., the Warsaw, Ind.-based company said.
"Zimmer’s 3rd quarter was marked by solid revenue growth in key product categories and geographies, building on a strong prior year performance," president & CEO David Dvorak said in prepared remarks. "Our financial results reflect the ongoing execution of our operational excellence initiatives, as demonstrated by continued margin expansion and accelerated earnings growth during the quarter. Looking to future quarters, we believe that our pending combination with Biomet, which we expect to close in the first quarter of 2015, will enhance stockholder value through the creation of a leading innovator in the global musculoskeletal market."
Zimmer tightened its guidance for the rest of the year, saying it now expects to report adjusted EPS of $6.05 on sales growth of 2.25%, compared with it prior outlook for adjusted EPS of $6.00 to $6.10 on sales growth of 2.0% to 3.0%.