Guidance cut, Q3 sales miss push Zimmer Biomet shares down

Zimmer Biomet (NYSE:ZBH) shares fell sharply this morning after the orthopedics giant posted lower-that-expected 3rd-quarter sales and cut its guidance for the rest of the year.

Warsaw, Ind.-based Zimmer logged profits of $158.8 million, or 78¢ per share, on sales of $1.83 billion for the 3 months ended Sept. 30, putting its bottom-line growth at a whopping 615.3% on sales growth of 4.0% compared with Q3 2015.

Adjusted to exclude 1-time items, earnings per share were $1.79, dead even with Wall Street’s consensus forecast, but analysts there were looking for sales of $1.84 billion.

“Zimmer Biomet’s 3rd-quarter performance was highlighted by further acceleration of our global [surgical, sports medicine, foot & ankle, extremities & trauma] category, as well as our continued strength in the Asia Pacific region,” president & CEO David Dvorak said in prepared remarks. “We believe that our comprehensive and expanding portfolio of musculoskeletal solutions positions us extremely well to address the evolving needs of customers in the dynamic healthcare environment in which they operate. Going forward, we will continue to focus on enhancements to our commercial and operational execution to more fully leverage our opportunities to improve the quality of life for patients and create value for our stockholders.”

Zimmer cut the high end of its full-year earnings outlook, saying it now expects to put up adjusted EPS of $7.90 to $7.95, down from prior guidance of $7.90 to $8.00. Sales are now forecast to be between $7.63 billion and $7.65 billion, compared with between $7.68 and $7.71 billion previously.

ZBH shares were down -14.2% at $105.15 apiece today in early trading.

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