What's Going On With Zimmer Biomet Shares After Q1 Earnings?
Portfolio Pulse from Nabaparna Bhattacharya
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) reported Q1 adjusted earnings per share of $1.94, surpassing the expected $1.87, with quarterly sales of $1.889 billion exceeding forecasts of $1.869 billion. Sales grew 3.2% year over year, with U.S. sales up 3.7% and international sales increasing by 2.5%. The company saw a 3.4% revenue increase in the Knees segment but a 0.3% decrease in the Hips unit. It also received FDA 510(k) clearances for the ROSA Shoulder System and the Z1 Femoral Hip Stem. Zimmer Biomet reiterated its FY24 EPS outlook of $8-$8.15 and expects a 5%-6% revenue change in constant currency. However, ZBH shares dropped 1.16% to $118.18.
May 02, 2024 | 5:31 pm
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Zimmer Biomet reported higher-than-expected Q1 earnings and sales, received FDA clearances for new products, but shares fell 1.16%.
Despite surpassing earnings and sales expectations and receiving FDA clearances for new products, Zimmer Biomet's stock price declined. This could be due to market reactions to broader economic factors or profit-taking by investors after the announcement. The short-term impact is negative due to the immediate price drop, but the company's strong performance and product approvals indicate positive long-term prospects.
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