Hip Implant Maker Zimmer Biomet Cuts Annual Profit Forecast On Paragon 28 Deal

Zimmer Biomet Holdings, Inc ZBH reported first-quarter adjusted EPS of $1.81, down from $1.94 a year ago, beating the Street estimates of $1.77.

The orthopedic giant reported sales of $1.91 billion, up 1.1% on a reported basis (+2.3% on constant currency), almost in line with the consensus of $1.9 billion.

• Knee product sales increased 0.6% to $792.9 million (+1.9%), and hip product sales increased 0.9% (+2.4% on constant currency) to $495.8 million.
• Sports Medicine products generated sales of $470.5 million, up 3.9% (+4.9%).
• Technology & Data, Bone Cement, and Surgical sales fell 4.7% (-3.5%) to $149.9 million.

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Operating margin improved to 15.3% from 14.1%.

Ivan Tornos, Zimmer Biomet’s President and CEO, addressed “the recently completed acquisition of Paragon 28.” The company also updated its full-year 2025 reported revenue guidance to include tariff proposals and currency expectations.

The company expects fiscal year 2025 adjusted EPS of $7.90-$8.10, down from prior guidance of $8.15-$8.35 versus consensus of $8.19.

The company expects 2025 revenue growth of 5.7% – 8.2% compared to 1%-3.5% expected earlier.

It expects a foreign currency exchange impact of 0.0%-0.5%.

In March, the U.S. Food and Drug Administration (FDA) granted 510(k) clearance to Persona Revision SoluTion Femur, a revision knee implant component offering an alternative for patients with sensitivities to certain metals. Persona Revision SoluTion Femur will be commercially available in the U.S. in Q3 2025.

In April, Zimmer Biomet’s RibFix Advantage Fixation System received CE Mark certification – the first CE Mark for an intrathoracic rib fixation system.

Price Action: ZBH stock is down 9.57% at $92.59 at last check Monday.

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