Zimmer Biomet Holdings, Inc. (ZBH) delivered strong third-quarter results, exceeding analyst expectations and signaling continued momentum in the orthopedic device market. The company reported adjusted earnings per share (EPS) of $1.74, in line with Wall Street estimates, marking an increase from $1.65 a year ago. Revenue climbed to $1.82 billion, surpassing the consensus forecast of $1.79 billion, representing a 4% year-over-year increase on a reported basis and 4.1% growth on a constant currency basis.
Key drivers behind Zimmer Biomet’s strong performance included robust growth in knee and hip product sales. Knee product sales surged 5.5% to $745.1 million, while hip product sales climbed 3.5% (or 3.7% on a constant currency basis) to $481.5 million. Sports Medicine products also contributed significantly, generating sales of $454.2 million, up 7.3% year-over-year.
Despite navigating ERP implementation challenges, Zimmer Biomet maintained a steady operating margin of approximately 15%. Net profit saw a substantial increase from $162.8 million to $249.2 million.
Reflecting the company’s optimistic outlook, Zimmer Biomet adjusted its full-year 2024 guidance, raising the adjusted EPS outlook from $8.00-$8.15 to $7.95-$8.05. The company also expects revenue growth of 3.5%-4% for 2024, compared to the previous guidance range of 4%-5%.
The company also announced the commercial launch of its highly-anticipated Z1 Femoral Hip System, a triple-taper femoral system designed for total hip arthroplasty. This new system pairs with Zimmer Biomet’s existing G7 Acetabular System, offering surgeons a comprehensive solution for total hip arthroplasty. The launch was unveiled at the 2024 annual American Association of Hip and Knee Surgeons meeting.
In response to the positive news, ZBH stock surged by 4.63% to $108.69 at last check Wednesday. Zimmer Biomet’s strong financial performance, coupled with the launch of its new Z1 Femoral Hip System, indicates continued growth and innovation within the orthopedic device market.
