Bengaluru: Medical device maker Zimmer Biomet Holdings forecast full-year adjusted profit below Wall Street estimates on Thursday, as it anticipates a hit from a strong dollar.
The company expects 2025 adjusted profit to be in the range of $8.15 to $8.35 per share, compared with the average of analysts’ expectations of $8.56 per share, according to data compiled by LSEG. The company expects a 1.5per cent to 2per cent negative impact from currency swings on its revenue this year.
However, the company’s fourth-quarter profit and revenue both came in slightly above expectations, due to strong demand for its devices used in hip and knee procedures.
Combined sales at Zimmer’s hips and knees units came in at $1.36 billion, compared to $1.30 billion, a year ago.
Sales at its unit that sells sports medicine and trauma care products came in at $489.4 million, compared to $453.3 million, a year ago.
Brokerage Evercore ISI says that the forecast is already lower than expected and Zimmer’s acquisition of orthopedic surgical devices maker Paragon 28, announced last month, could further reduce earnings by another 10 cents.
In the fourth quarter, the company posted a profit of $2.31 per share, beating estimates by 1 cent.
Zimmer’s total sales for the reported quarter came in at $2.02 billion, compared with analysts’ estimates of $2.01 billion. (Reporting by Kamal Choudhury in Bengaluru; Editing by Leroy Leo)
