London: Medtech firm Zimmer Biomet Holdings beat Wall Street estimates for first-quarter profit on Thursday, on the back of robust demand for its devices that are used in knee and hip reconstruction procedures.
Zimmer’s results extend a strong quarter for medical device makers, including peer Stryker Corp which raised its annual profit outlook betting on steady demand for its hip and knee implants.
Investors have increased expectations for medical device makers following a post-pandemic surge in demand for medical procedures, especially among older Americans.
“This is a good start to the year that should help give investors confidence management can ultimately deliver what they’ve guided to,” J.P.Morgan analyst Robbie Marcus wrote in a note.
Combined sales at Zimmer’s hips and knees units were $1.28 billion, in line with analysts’ expectations. The hip and knee implant maker reiterated its annual profit outlook in the range of $8.00 to $8.15 per share. Analysts were expecting annual profit of $8.06 per share. Zimmer’s first-quarter revenue rose 3.2 per cent to $1.89 billion, compared with analysts’ average estimate of $1.87 billion, according to LSEG data.
On an adjusted basis, the company made a profit of $1.94 per share in the quarter ended March 31, topping estimates of $1.87.
(Reporting by Mariam Sunny in Bengaluru; Editing by Krishna Chandra Eluri)
