Share prices slipped this morning for Zimmer Biomet (NYSE:ZBH) after the orthopedics giant reported second-quarter earnings that misses the consensus forecast on Wall Street and lowered its outlook for the rest of the year – despite a swing to black for the period.
Warsaw, Ind.-based Zimmer Biomet posted profits of $184.2 million, or 90¢ per share, on sales of $1.95 billion for the three months ended June 30. That amounts to a top-line gain 0f 1.1% compared with Q2 2016, when the company put up losses of $-31.3 million, or -16¢ per share.
Adjusted to exclude one-time items, earnings per share were $2.08, 2¢ shy of the Street, where analysts were looking for sales of $1.95 billion.
“During the second quarter, we increased production output from our Warsaw North Campus manufacturing facility, and continued to drive efforts to achieve best-in-class quality systems. Our sales growth fell short of our expectations, due in part to production delays of certain key brands and slower-than-expected sales recapture from previously affected customers in the United States. These factors have informed our updated outlook for the full year,” interim CEO and CFO Daniel Florin said in prepared remarks. “Looking forward, we remain focused on fully restoring product supply to enhance our commercial execution, while continuing to closely engage with our customers and take advantage of the opportunities in front of us.”
“We have great confidence in Dan as he transitions into the role of interim CEO. He has already begun to leverage his deep knowledge of Zimmer Biomet and decades of medical device industry experience to lead the Company during this period,” added chairman Larry Glasscock. “We have initiated a thorough search to identify the best candidate to serve as Zimmer Biomet’s next CEO. We are seeking a strong leader, whose strategic and operational track record aligns with Zimmer Biomet’s commitment to growth and enhancing stockholder value.”
Zimmer Biomet said it now expects to report adjusted EPS of $8.20 to $8.30 this year, down from prior guidance for $8.50 to $8.60. Sales are now pegged at $7.80 billion to $7.87 billion, compared with $7.84 billion to $7.92 billion previously.
ZBH shares were down -2.2% to $125.89 apiece today in late-morning trading.
The post Zimmer Biomet slides on Q2 earnings miss appeared first on MassDevice.
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