Zimmer Biomet Exceeds Profit Expectations Driven by Strong Demand for Medical Devices, Reports Reuters

Zimmer Biomet Holdings recently surpassed Wall Street expectations for its second-quarter profit, primarily fueled by strong demand for its devices used in joint reconstruction surgeries. The surge in interest for these procedures comes as more individuals, especially older adults, opt for non-urgent surgeries like hip and knee replacements.

In a similar vein, competitor Stryker Corp elevated its annual profit forecasts last month, anticipating continued strong demand for its hip and knee implants. However, Zimmer adjusted its revenue growth projections downward, now expecting a 4% to 5% increase for the year, revised from a previous forecast of 4.5% to 5.5%, largely due to anticipated foreign currency impacts.

Sales for Zimmer’s hip and knee divisions totaled $1.31 billion, slightly below analysts’ expectations of $1.32 billion. On a brighter note, the company reported significant growth from its sports medicine and trauma care segment, which saw year-over-year sales rise by 6.1% to $469.5 million, exceeding the projected $465.4 million.

Additionally, Zimmer announced plans to acquire OrthoGrid Systems, a privately held medtech firm, to enhance its offerings with artificial intelligence-driven surgical guidance systems specifically for total hip replacements.

The company reaffirmed its full-year profit expectations for 2024, estimating earnings between $8.00 and $8.15 per share, aligning closely with analysts’ expectations of $8.09 per share.

In terms of revenue performance, Zimmer’s second-quarter revenue climbed nearly 4% to reach $1.94 billion, matching the average estimates set by analysts. Adjusted earnings for the quarter ending June 30 came in at $2.01 per share, surpassing forecasts of $1.99 per share.