Why Is Zimmer Biomet Stock Trading Lower Today?

Thursday, Zimmer Biomet Holdings Inc ZBH reported fourth-quarter 2023 net sales of $1.94 billion, up 6.3% Y/Y (+6.1% on a constant currency basis), almost in line with the consensus of $1.93 billion.

Net earnings for the fourth quarter were $419.2 million, or $458.1 million on an adjusted basis. Adjusted EPS reached $2.20, beating the consensus of $2.15.

The company initiated a global restructuring program in late 2023 to optimize its cost base and drive greater efficiencies. The actions are expected to result in approximately $200 million in run-rate cost savings as the company exits 2025.

“We are pleased to conclude a very successful year with strong fourth-quarter results driven by consistent execution, including a healthy second-half growth profile,” said Ivan Tornos, Zimmer Biomet’s President and Chief Executive Officer. “I’m confident in our ability to carry our 2023 momentum into 2024 and to create further value for our stakeholders.”

Net sales from the knees segment increased 5.9% (+5.6% on constant currency) to $798.3 million. Hips segment revenue increased 3.3% (+3.6%) to $504.8 million. Sports Medicines segment sales increased 6.9% (+6.4%) to $453.3 million.

Guidance: Zimmer Biomet expects the fiscal year 2024 adjusted diluted EPS of $8.00-$8.15 versus consensus of $7.95 and $7.55 reported in the fiscal year 2023.

The company expects revenue growth of 4.5%-5.5% Y/Y (5.0%-6.0% on constant currency).

Price Action: ZBH shares are down 3.65% at $122.89 on the last check Thursday.

Photo via Wikimedia Commons