Zimmer (NYSE:ZMH) beat expectations for its 4th-quarter sales and earnings, sending share prices up today as the medical device company’s 2014 forecast falls in line with Wall Street’s outlook.
Zimmer reported profits of $235.9 million, or $1.36 per share, on sales of $$1.24 billion for the 3 months ended Dec. 31, 2013, for bottom-line growth of 54.4% on sales growth of 5.1%, compared with Q4 2013. Analysts were looking for adjusted earnings per share of $1.62, a target Zimmer beat by 4¢.
Full-year profits were $761.0 million, or $4.43 per share, on sales of $4.62 billion. That works out to profit growth of 0.8% on sales growth of 3.4% compared with 2012. Adjusted EPS were $5.75, again 4¢ ahead of The Street.
"In the 4th quarter, Zimmer continued to deliver accelerated top line growth. These strong results were led by the successful commercialization of a number of innovative new offerings, including Persona, the personalized knee system, and its accompanying suite of next-generation intelligent instruments," president & CEO David Dvorak said in prepared remarks. "Zimmer will remain focused on developing clinically relevant solutions to better serve the evolving global healthcare landscape. We are confident that our strategy positions the company for continued growth in 2014 and beyond, in concert with our ongoing commitments to quality and operational excellence and disciplined capital management."
Zimmer said it expects to post adjusted EPS of $6.10 to $6.30 ($5.00 to $5.20 including 1-time items) on sales growth of 2.5%-4.5%.
The news sent ZMH shares up 1.0% to $94.13 apiece as of about 12:40 p.m. today.
