Zimmer Biomet Anticipates Currency Headwinds, Forecasts Lower Profit
Zimmer Biomet Holdings (ZBH), a medical device manufacturer, has projected its adjusted full-year profit below market expectations, citing the impact of a strong US dollar.
The company expects adjusted earnings for 2025 to range from $8.15 to $8.35 per share, against the consensus analyst estimate of $8.56 per share (LSEG). Currency fluctuations are expected to negatively impact revenue by 1.5% to 2% this year.
Despite the weaker outlook, Zimmer Biomet reported better-than-expected Q4 profit and revenue, driven by robust demand for its hip and knee products. Combined sales in these units reached $1.36 billion, a growth from $1.30 billion a year ago. The company's sports medicine and trauma care business also saw an increase in sales, from $453.3 million to $489.4 million.
Analysts at Evercore ISI have noted that the forecast is already below expectations, and Zimmer Biomet's recent acquisition of Paragon 28 could further reduce earnings by 10 cents.
For Q4, the company reported earnings of $2.31 per share, exceeding estimates by a cent. Total sales for the quarter amounted to $2.02 billion, slightly above the analyst consensus of $2.01 billion.