Feb 10 (Reuters) – Zimmer Biomet on Tuesday beat Wall Street estimates for fourth-quarter profit and revenue as the company capitalized on steady demand for its devices used in orthopedic procedures.
Shares of the Warsaw, Indiana based company rose 1.5% in premarket trading.
The orthopedic device maker reported a 10.9% increase in fourth-quarter net sales to $2.24 billion, showcasing robust demand for its hips and knees units and reflecting sustained procedural volumes in joint replacement surgeries.
Analysts had expected quarterly sales of $2.23 billion, according to LSEG compiled data.
However, the company expects 2026 profit in the range of $8.30 and $8.45 per share, which is below analysts’ average estimate $8.48 per share.
Medical device manufacturers are riding a surge in demand as insurers report higher medical-loss ratios, a sign that patients are scheduling more procedures and pushing utilization higher.
Zimmer’s hips and knees segments reported sales increases of 7.9% and 6% respectively in the fourth quarter, compared to the same quarter last year.
Chief Executive Ivan Tornos said in a statement the company expects a shift to a mostly direct and specialized U.S. sales model to weigh on 2026 sales growth, but said it should support longer-term expansion.
Speaking at an industry conference in January, Zimmer’s executives previously said the United States, its biggest market, needs a more focused sales team and stronger coverage in outpatient surgery centers, where an increasing share of procedures is shifting.
Zimmer expects revenue growth of 2.5% to 4.5% for this year and a foreign currency impact of 0.5%.
For the quarter ended December 31, the company reported a profit of $2.42 per share on an adjusted basis, beating analysts’ estimate of $2.40 per share.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Tasim Zahid)
