By Sahil Pandey
(Reuters) -Zimmer Biomet Holdings cut its 2025 organic revenue growth forecast following weakness in Latin America and emerging markets in Europe, sending shares 15% lower on Wednesday.
The medical device maker kept its overall revenue growth forecast stable, aided by foreign currency fluctuations. But it lowered the upper end of its organic growth outlook to 4.0% from 4.5%, while keeping the floor constant at 3.5%.
“We saw a last minute cancellation of distributor orders mostly from the Middle East and Eastern Europe,” said CEO Ivan Tornos.
The company reported 5% organic sales growth for the third quarter, which at least two analysts said was below their estimates.
New products appear to be helping a bit in the U.S. but even there, competitive pressures from peers like Stryker seem to have grown recently, Baird analyst Jeff Johnson said.
Zimmer maintained its annual adjusted profit forecast, while raising its foreign currency exchange impact to a range of 0.5% to 1%, from 0.5% earlier.
Third-quarter net sales rose 9.7% to $2 billion, largely in line with analysts’ average estimate, according to data compiled by LSEG.
Combined sales at Zimmer’s hips and knees units totaled $1.30 billion, slightly above the $1.29 billion expected.
Sales at its sports medicine, extremities and trauma unit rose 19% to $541.5 million, but fell short of estimates of $552.96 million.
The company posted adjusted profit per share of $1.90, beating the average estimate of $1.87.
(Reporting by Sahil Pandey and Christy Santhosh in Bengaluru; Editing by Leroy Leo)
