Zimmer Biomet Holdings, Inc. (NYSE:ZBH) reported second-quarter adjusted earnings of $2.07 per share, up 3% year over year, beating the Street estimates of $1.99.
The orthopedic implant maker reported sales of $2.08 billion, up 7% on a reported basis, up 5.4% on a constant currency basis, and 2.8% on an organic constant currency basis, beating the consensus of $2.05 billion.
Knee product sales increased 3.1% to $826 million (+1.8% organically) and hip product sales increased 5.8% (+4%) to $536.1 million.
Sports Medicine products generated sales of $550.6 million, up 17.3% (+4.9%).
Technology & Data, Bone Cement, and Surgical sales fell 0.2% (-2.2%) to $164.6 million.
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Adjusted operating margin was 27.8% down from 28.5% a year ago. Adjusted gross margin improved from 71.6% to 72.3%.
“Our team delivered another solid quarter of growth, as our robust new product cycle drove significant acceleration in our U.S. Hips and Knees portfolios and continued strong growth in our global S.E.T. business,” said Ivan Tornos, chairman, president and CEO of Zimmer Biomet.
“We are excited about the early customer enthusiasm and adoption for our broad new product portfolio, which we believe will continue to fuel our growth through 2025 and beyond,” Tornos commented.
Guidance:
Zimmer Biomet raised its fiscal 2025 adjusted earnings guidance from $7.90-$8.10 per share to $8.10-$8.30 compared to the consensus of $7.97
The company narrowed 2025 sales guidance from $8.12 billion-$8.31 billion to $8.19 billion-$8.27 billion compared to the consensus of $8.18 billion.
The company expects 2025 revenue growth of 6.7%- 7.7% compared to 5.7% – 8.2% expected earlier.
During the investor earnings conference call, Zimmer Biomet said guidance incorporates lower tariff impact and weakening US Dollar benefit.
The company lowered the 2025 tariff headwind to $40 million, mainly in the second half.
ZBH Price Action: Zimmer Biomet Holdings stock is up 7.29% at $97.87 at publication on Thursday.
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