Zimmer 3Q profit jumps on lower costs
Orthopedic implant maker Zimmer Holdings Inc. said Thursday its third-quarter profit climbed 27 percent on lower operating expenses.
The results beat Wall Street estimates but Zimmer cut its estimate for revenue growth on a constant currency basis for the year and its shares fell almost 4 percent.
The company reported net income of $191.1 million, or 96 cents per share, up from $149.9, or 70 cents per share, a year ago. Sales fell 1 percent to $965 million from $975.6 million.
Analysts polled by Thomson Reuters expected, on average, earnings of 95 cents per share on $994.7 million in revenue.
The cost of products sold fell 12 percent to $219.2 million while operating expenses fell 9 percent to $474.2 million.
Looking ahead, the company expects fourth-quarter adjusted profit between $1.17 and $1.22 per share and narrowed its full-year outlook to between $4.24 and $4.29. The company had previously set full-year guidance for profit between $4.15 and $4.35 per share.
Analysts polled by Thomson Reuters expect fourth-quarter profit of $1.20 per share and full-year profit of $4.26 per share.
It also trimmed its estimate of revenue growth on a constant currency basis for the year to 2 percent versus an earlier projection of 3 percent to 5 percent growth.
Its shares tumbled $1.89, or 3.6 percent, to $50 in morning trading.