Latest news with #SuketuUpadhyay
Reuters
07-08-2025
- Business
- Reuters
Zimmer Biomet raises annual profit forecast on lower tariff impact
Aug 7 (Reuters) - Medical device maker Zimmer Biomet Holdings (ZBH.N), opens new tab raised its annual adjusted profit forecast on Thursday as it anticipates lower-than-expected tariff impacts, sending shares up 6% in morning trading. The Warsaw, Indiana-based company now expects about $40 million in tariff headwinds for 2025, down from its previous estimate of $60 million to $80 million. "Our tariff assumption is better than we originally expected, as we've had more time to work through our mitigation strategies and are seeing lower overall tariff rates," CFO Suketu Upadhyay told analysts in post-earnings conference call. The company previously expected tariff risks in China. Medical device makers have benefited from a surge in demand as more people, particularly older Americans, seek health care services and surgical procedures. Zimmer lifted its 2025 adjusted profit per share $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. It posted an adjusted profit of $2.07 per share during the quarter ended June 30, topping estimates of $1.98 per share. Its second-quarter revenue came in at $2.08 billion, also above expectations of $2.05 billion. "We think this performance should be enough to satisfy cautious investor expectations," said J.P. Morgan analyst Robbie Marcus. Zimmer said it expects 2025 revenue growth between 6.7% and 7.7%, from its prior 5.7% to 8.2% forecast.
Yahoo
07-05-2025
- Business
- Yahoo
Zimmer Biomet expects $60M to $80M tariff impact this year
This story was originally published on MedTech Dive. To receive daily news and insights, subscribe to our free daily MedTech Dive newsletter. By the numbers Q1 revenue: $1.91 billion 1.1% increase year over year Net income: $182.6 million 5.6% increase year over year Zimmer Biomet expects a $60 million to $80 million impact to its operating profit from tariffs this year, CFO Suketu Upadhyay told investors Monday. That estimate accounts for 'current administration proposals,' Upadhyay said, including announced European reciprocal tariffs going into effect after a 90-day stay. Most of the impact is expected in the second half of the year. Zimmer's stock fell by more than 11% on Monday, as analysts called out uncertainty about tariffs and lost market share in the company's knees segment. J.P. Morgan analyst Robbie Marcus wrote in a research note that the tariff impact looks 'manageable at face value, but we have more questions than answers on the size of the full-year impact in 2026.' BTIG analyst Ryan Zimmerman added that the 2026 impact remains an 'open-ended question,' and the orthopedics company's inventory levels suggest that tariffs will show up more meaningfully next year. Zimmer lowered its adjusted earnings per share forecast by 25 cents to a range of $7.90 to $8.10 for 2025. The forecast factors in the tariffs and the $1.1 billion purchase of Paragon 28, a company specializing in foot and ankle implants, which closed in April. At the same time, the company raised its revenue growth forecast for the year to a range of 5.7% to 8.2%, accounting for foreign currency rates and the Paragon acquisition. Zimmer forecast a smaller hit from tariffs than other medtech peers, which have set out estimates in the hundreds of millions of dollars. For example, competitor Stryker called out a $200 million impact from tariffs, and lowered its earning per share forecast. When asked about this, Upadhyay said the majority of Zimmer's devices are produced in the U.S. Still, the company is taking some early steps to mitigate the impact, including optimizing country of origin, using dual sourcing or redundant sourcing when possible, and spending less in areas that don't affect the company's long-term growth, the CFO added. Lost share in knees Zimmer reported $792.9 million in sales from its knees business in the first quarter, a 0.6% increase year over year. Meanwhile, competitor Stryker, which reported sales of $639 million in knees, grew at a faster rate of 8.7%.
