Zimmer Biomet raises annual profit forecast on strong demand for medical devices
Medical device makers have benefited from a surge in demand as more people, particularly older Americans, sought health care services and surgical procedures. The demographic shift toward an aging population continues to fuel robust procedure volumes across orthopedic specialties.
Zimmer expects 2025 adjusted profit per share in the range of $8.10 to $8.30, up from its prior view of $7.90 to $8.10 per share. Analysts were expecting $7.97 per share, according to data compiled by LSEG.
"Our robust new product cycle drove significant acceleration in our U.S. hips and knees portfolios and continued strong growth in our global S.E.T. (sports medicine, extremities, and trauma) business," CEO Ivan Tornos said.
The company attributed its performance to early customer adoption of its new product portfolio, including advancements in surgical robotics.
Combined sales at Zimmer's hips and knees units came in at $1.36 billion during the quarter ended June 30, compared with $1.31 billion a year ago.
Sales at its unit that sells sports medicine and trauma care products climbed 17.3% to $550.6 million, while analysts estimated $534 million.
It posted an adjusted profit of $2.07 per share, topping estimates of $1.98 per share. Its second-quarter revenue came in at $2.08 billion, also above expectations of $2.05 billion.
Zimmer said it expects 2025 revenue growth of 6.7% to 7.7%, from its prior 5.7% to 8.2% forecast.
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