Shares of medical technology company Zimmer Biomet Holdings Inc (NYSE:ZBH) declined after it reported results for the second quarter of 2023. Revenue, earnings per share, and guidance all topped published consensus figures but they were still not enough to meet elevated expectations on Wall Street.
Zimmer Biomet reported second-quarter EPS of 1.82, a penny better than the consensus estimate of $1.81. Second quarter net sales were $1.87 billion, an increase of 4.9% from last year, and better than the consensus of $1.82B.
Zimmer Biomet increased its guidance for reported revenue change from 5% - 6% to 6.5% - 7%. Adjusted EPS guidance was increased from $7.40 - $7.50 to $7.47 - $7.57.
Despite topping estimates, shares of Zimmer Biomet declined 5% after its results were published.
Commenting on the stock’s reaction Deutsche Bank research analysts said, “Post [UnitedHealth’s] commentary around strong utilization of ortho procedures on 6/14., expectations became elevated but with the slow sell-off over the past few weeks, we believe expectations are more muted. With that said, we believe the buyside was looking for a bigger revenue / EPS beat in 2Q and these results could be disappointing.”
JPMorgan analysts also commented on the stock, saying, “While we would have liked to see more of the revenue upside flow through to EPS, with solid top-line results and guidance moving up on both the top and bottom lines, overall we see this as a good quarter for Zimmer.”