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On Thursday, Zimmer Biomet Holdings, Inc (NYSE:ZBH) reported fourth-quarter adjusted EPS of $2.31, up from $2.20 a year ago, beating the Street estimates of $2.30.
The orthopedic giant reported sales of $2.02 billion, up 4.3% on a reported basis (+4.9% on constant currency), beating the consensus of $2.014 billion.
Knee product sales increased 5.1% to $839.2 million, and hip product sales increased 3% (+4% on constant currency) to $520 million.
Sports Medicine products generated sales of $489.4 million, up 8% (+8.4%).
"We have committed to diversifying our portfolio outside of core orthopedics and investing in attractive, higher-growth segments. Our recently announced agreement to acquire Paragon 28 marks a bold step towards executing on our diversification ambitions; once the transaction is closed, we expect our S.E.T. business to be larger than our Hip business, and to grow at a much faster pace," said Ivan Tornos, Zimmer Biomet's President and CEO.
Operating margin improved to 19.2% from 18.3%.
Recently, Zimmer Biomet agreed to acquire Paragon 28, Inc. (NASDAQ:FNA) for an upfront cash payment of $13.00 per share, corresponding to an equity value of approximately $1.1 billion and an enterprise value of approximately $1.2 billion.
Paragon 28 shareholders will also receive a contingent value right, which entitles the holder to up to $1.00 per share in cash if certain revenue milestones are achieved.
Guidance: Zimmer Biomet expects fiscal year 2025 adjusted EPS of $8.15-$8.35 versus consensus of $8.55. The company expects 2025 revenue growth of 1%-3.5%.
Price Action: ZBH stock is down 3.13% at $104.86 at last check Thursday.
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This article Why Is Zimmer Biomet Stock Trading Lower On Thursday? originally appeared on Benzinga.com
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