Zimmer Biomet reports $1.9B in Q2 revenue: 5 key notes

Spinal Tech

Zimmer Biomet released expected preliminary second quarter financial reports and addressed production lag at the legacy Biomet manufacturing site in Warsaw, Ind. The results were released the same day David Dvorak stepped down from his role as CEO after leading the company for 10 years.


Interim CEO Dan Floin said, "Certain brands did not achieve targeted production levels as quickly as we anticipated," after Zimmer's merger with Biomet, and the company has been slower than expected at recapturing expected sales from impacted customers.


"As we look toward the second half of 2017, we are focused on restoring full product supply and improving customer engagement, while continuing to progress on our quality enhancement efforts," said Mr. Florin.


Here are five things to know:


1. Second quarter revenue hit $1.9 billion, a 1.1 percent increase over the same period last year. The projection falls within the company's previously anticipated quarterly revenues.


2. Last year, Zimmer Biomet acquired spine device and implant company LDR; excluding the 240 basis points LDR contributed to second quarter revenues, the revenues decreased 1.3 percent.


3. Zimmer Biomet's adjusted diluted earnings per share are expected at the bottom of previously issued guidance of $2.08 to $2.13.


4. The company estimates foreign exchange rates had a favorable impact on revenue of 120 basis points relative to the assumed second quarter guidance.


5. Zimmer Biomet's second quarter conference call is scheduled for July 27 and the company will provide a full update and guidance on quarterly earnings at that point.


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