Zimmer Biomet Clocks 5% Revenue Growth In Q2, Raises Annual Guidance

Zimmer Biomet Holdings, Inc. ZBH reported Q2 FY23 adjusted EPS of $1.82, in line with the consensus estimate.

It posted Q2 sales of $1.870 billion, up 4.9% Y/Y (+6% constant currency). Revenues came in above the consensus of $1.825 billion.

"Our performance and execution in Q2 allowed us to deliver another strong quarter that was above our expectations, despite ongoing challenges in the macroenvironment," said Bryan Hanson, Chairman, President, and CEO of Zimmer Biomet.

Revenue from knee products increased 9.4% Y/Y to $771.4 million (+10.5% constant currency).

Hip products increased by 3.5% to $504.3 million (+4.9% constant currency).

"We are raising our financial guidance for the rest of 2023 based on our confidence in our business performance, the strength of our innovation pipeline and the Zimmer Biomet team's ability to deliver for our key stakeholders," Hanson added.

Guidance

Zimmer Biomet expects an adjusted EPS of $7.47-$7.57 for 2023, up from the prior forecast of $7.40 - $7.50. On average, analysts expect a profit of $7.45 per share.

The company expects revenue to grow 6.5%-7% this year, compared with its previous forecast of 5%-6%.

Price Action: ZBH shares are down 5.15% at $131.04 on the last check Tuesday.