Zimmer Biomet Holdings ((ZBH)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Zimmer Biomet’s recent earnings call painted a mixed picture, highlighting significant growth in the U.S. market and advancements in technology, while also addressing challenges in emerging markets and specific segments. This has led to a cautious adjustment in revenue guidance, reflecting both optimism and prudence in the company’s outlook.
U.S. Business Growth
Zimmer Biomet’s U.S. business demonstrated robust growth, achieving a 5.6% increase on an organic constant currency basis. This marks the company’s best performance in over two years, driven by the adoption of new products and strong placements in robotics, underscoring the strength of its domestic operations.
Knees and Hips Segment Performance
The U.S. Knees segment experienced a 3.5% growth, propelled by products like Persona OsseoTi and Oxford knee implants. Similarly, the U.S. Hips segment grew by 4%, thanks to innovations such as Z1, HAMMR, and OrthoGrid, indicating a healthy demand for Zimmer Biomet’s orthopedic solutions.
Technology and Data Segment Growth
Globally, the Technology and Data, Bone Cement, and Surgical segment saw an impressive 11.3% increase, driven by strong ROSA robotic placements. This highlights Zimmer Biomet’s commitment to integrating advanced technology into its product offerings.
Adjusted Earnings Per Share Growth
Despite facing challenges like tariffs and integration costs, Zimmer Biomet reported a 9.2% year-over-year increase in adjusted earnings per share, reaching $1.90. This demonstrates the company’s ability to maintain profitability amidst external pressures.
Iodine Technology Launch in Japan
A significant milestone was achieved with the PMDA approval for iodine-treated hip implants in Japan. This first-of-its-kind technology aims to address periprosthetic joint infections, showcasing Zimmer Biomet’s innovative edge in the medical device industry.
Emerging Markets and Restorative Therapies Weakness
The company faced unexpected late-quarter weaknesses in Eastern Europe, Latin America, and non-core restorative therapies, impacting overall growth by approximately 120 basis points. This highlights the challenges Zimmer Biomet faces in expanding its global footprint.
Updated Revenue Guidance
Zimmer Biomet has adjusted its full-year organic constant currency revenue growth expectations to 3.5% to 4%, down from the previous 3.5% to 4.5% range. This revision reflects ongoing weaknesses in certain segments and markets, prompting a more conservative outlook.
Challenges in the U.S. Revision Market
The company anticipates a continued slowdown in the U.S. revision market for both hips and knees throughout the remainder of 2025, indicating potential headwinds in this segment.
Forward-Looking Guidance
Looking ahead, Zimmer Biomet reported a 5% sales growth on an organic constant currency basis for the third quarter of 2025, with the U.S. business showing notable acceleration. Despite challenges in certain regions and segments, the company remains optimistic about its innovation cycle and new product launches. The updated revenue growth expectation is set at 3.5% to 4%, with adjusted EPS guidance maintained at $8.10 to $8.30.
In summary, Zimmer Biomet’s earnings call reflects a balanced view of growth and challenges. While the U.S. market and technological advancements drive optimism, emerging market weaknesses and segment-specific issues necessitate cautious revenue guidance. The company’s strategic focus on innovation and product development positions it well for future growth, despite the hurdles it faces.