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Zimmer Biomet (ZBH) Misses Q2 Earnings, Meets Sales Estimate

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Ever undergone reconstructive orthopedic surgery? Yes, then you may have been implanted with one of the personalized joint replacement technologies of Indiana-based, one of the leading orthopedic medical devices manufacturer–Zimmer Biomet Holdings, Inc. (ZBH - Free Report) , formerly known as Zimmer Holdings. In June 2015, legacy Zimmer completed the acquisition of Biomet for $14.0 billion. With operations in more than 25 countries, the company markets its orthopedic reconstructive, spinal and trauma devices, biologics, dental implants and related surgical products in more than 100 countries.

Currently, Zimmer Biomet has a Zacks Rank #3 (Hold) but that could change following its second quarter 2017 earnings report which has just released. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here). We have highlighted some of the key details from the just-released announcement below:

Earnings: The Zacks Consensus Estimate stands at $2.10 per share over the last 60 days. Zimmer Biomet’s adjusted earnings per share of $2.08 had missed this estimate by 2 cents.

Revenues: Zimmer Biomet posted revenues of $1.95 billion which is in line with the Zacks Consensus Estimate for revenues of 1.95 billion.

Key Stats: Second-quarter revenues derived from Zimmer’s Knees segment were down 2.4% year over year to $680.4 million, while Hips recorded sales of $469.8 million, down 1.5% compared with the prior-year quarter. Revenues from S.E.T (Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma) improved 2.6% year over year to $422.8 million.

Major Factors:  Per management, the company increased production output from the Warsaw North Campus manufacturing facility, and continued to drive efforts to achieve best-in-class quality systems. The revenue growth did not meet the company’s expectations, due to production delays of certain key brands and slower-than-expected sales recapture from previously affected customers in the United States. The company also updated its 2017 sales and earnings guidance.

Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session.

Check back later for our full write up on this Zimmer Biomet earnings report later!

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