The maker of the eponymous Zimmer frame saw its shares fall 12.3% to US$107.44 in early deals, as it lowered earnings and sales guidance.
The company now expects full-year diluted earnings per share to fall within the range of US$1.50 to US$1.60, compared to previous guidance at the half-year stage of US$1.50 to US$1.75.
Revenue for the whole of 2016 is expected to be in the range of US$7.63bn to US$7.65bn, versus a previous guidance range of US$7.68bn to US$7.715bn.
Revenue growth, excluding the contribution from LDR Holding Corporation, on a constant currency adjusted pro forma basis, is now expected to be in a range of 1.65% to 1.90% for the full year 2016; previously, the company had estimated full-year revenue growth to be in a range of 2.5% to 3.0% on a similar basis.
The company, also famed for its hip and knee joint replacement products, reported a 615% year-on-year increase in net earnings to US$158.8mln. Adjusted earnings, which strips out exceptional items, was a somewhat more sedate 7.1% higher year-on-year at US$362.4mln.
Third quarter net sales rose 4% from a year earlier to US$1.83bn, helped by some mild foreign exchange tailwinds; stripping these out saw the rise reduce to 3.5%.
“Zimmer Biomet’s third quarter performance was highlighted by further acceleration of our global SET [Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma] category, as well as our continued strength in the Asia Pacific region,” said David Dvorak, who is both president and chief executive officer of Zimmer Biomet.
“We believe that our comprehensive and expanding portfolio of musculoskeletal solutions positions us extremely well to address the evolving needs of customers in the dynamic healthcare environment in which they operate. Going forward, we will continue to focus on enhancements to our commercial and operational execution to more fully leverage our opportunities to improve the quality of life for patients and create value for our stockholders,” he added.
Story by ProactiveInvestors