London: medical technology company Zimmer Biomet Holdings beat Wall Street estimates by first quarter profit on Thursday, on the back of robust demand for its devices that are used on the knee and hip reconstruction procedures.
Zimmer results extend a good quarter for medical device manufacturersincluding rival Stryker Corp, which raised its annual profit outlook betting on steady demand for its hip and knee implants.
Investors have higher expectations for medical device manufacturers following a post-pandemic surge in demand for medical procedures, especially among older Americans.
“This is a strong start to the year that should help give investors confidence that management can ultimately deliver on what they set out to do,” JPMorgan analyst Robbie Marcus wrote in a note.
Combined sales of Zimmer’s hip and knee units were $1.28 billion, in line with analyst expectations. The hip and knee implant maker reiterated its annual earnings forecast in the range of $8.00 to $8.15 per share. Analysts had expected full-year earnings of $8.06 per share. Zimmer’s first-quarter revenue rose 3.2 percent to $1.89 billion, compared with analysts’ average estimate of $1.87 billion, according to LSEG data.
On an adjusted basis, the company earned $1.94 per share in the quarter ended March 31, beating estimates of $1.87.
(Reporting by Mariam Sunny in Bengaluru; Editing by Krishna Chandra Eluri)
