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Zimmer Biomet lowers 2025 profit forecast on acquisition costs, tariff uncertainty
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Zimmer Biomet lowers 2025 profit forecast on acquisition costs, tariff uncertainty
May 26, 2025 1:00 AM

May 5 (Reuters) - Zimmer Biomet Holdings ( ZBH ) on

Monday lowered its full-year adjusted profit forecast, as the

medical device maker anticipates a hit from its recent

acquisition of Paragon 28, currency volatility, and

proposed tariffs.

Investors and analysts are closely monitoring how medical

device makers will handle any impact from the Trump

administration's tariffs and whether they expect benefits from

foreign currency fluctuations.

Earlier this year, Zimmer said that it would acquire medical

device firm Paragon 28 for $1.1 billion, to expand its portfolio

of orthopedic surgical devices.

Zimmer expects 2025 adjusted profit per share in the range

of $7.90 to $8.10, compared with its prior view of $8.15 to

$8.35 per share. Analysts were expecting annual profit of $8.19

per share, according to data compiled by LSEG.

The Warsaw, Indiana-based company expects currency swings to

have a negligible to marginally positive effect on its 2025

revenue, revising its initial forecast of a 1.5% to 2% negative

impact to a range of 0% to 0.5%.

Last week, peer Stryker Corp ( SYK ) reduced its 2025 profit

outlook and said it anticipated a $200 million tariff impact in

the year.

However, Zimmer's first-quarter profit and revenue both came

in slightly above expectations, due to strong demand for its

devices used in hip and knee procedures.

Combined sales at Zimmer's hips and knees units came in at

$1.29 billion, compared to $1.28 billion, a year ago.

On an adjusted basis, the company posted a profit of $1.81

per share for the quarter ended March 31, topping estimates of

$1.77 per share.

Zimmer's first-quarter revenue came in at $1.91 billion,

slightly ahead of estimates of $1.90 billion.

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