2023-05-02 09:21:58 ET
Orthopedic equipment maker Zimmer Biomet Holdings ( NYSE: ZBH ) added ~5% pre-market Tuesday after reporting better-than-expected Q1 2023 results and raising its guidance for 2023 ahead of Street forecasts.
With results exceeding projections, Warsaw, Indiana-based Zimmer ( ZBH ) raised and tightened its full-year revenue and adjusted guidance for diluted EPS to 5.0% - 6.0% and $7.40 - $7.50 compared to ~3% YoY and $7.06 in the consensus, respectively.
"Our strong performance in Q1 outpaced our internal growth expectations, driven by continued procedure recovery, solid execution and increasing traction around ZB innovation," Chief Executive Bryan Hanson remarked.
For Q1 2023, reported $1.8B net sales compared to $1.7B in the consensus as its topline expanded ~10% YoY on a reported basis from $1.7B in the prior year quarter.
Meanwhile, GAAP gross margin improved to ~65% from ~62% in Q1 2022, while adjusted gross margin rose to ~73% from ~71%. With the operating profit margin reaching ~18% from ~12% in the prior year period, ZBH's bottom line expanded to $232.5M from $14.2M last year.
Geographically, the U.S. led revenue growth for Zimmer ( ZBH ), adding $1.1B to the topline with ~13% YoY growth, while the international market generated $770.6M with ~7% YoY growth.
Divisionally, the knee and hip segments added $762.5M and $492.8M in net sales with ~15% YoY and ~9% YoY, respectively.
More on ZBH
- Zimmer Biomet gains as Evercore ISI upgrades citing Medicare update
- Improving Ortho Performance At Zimmer Biomet Is Encouraging
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Zimmer Biomet gains after lifting outlook ahead of consensus