Zimmer Biomet Holdings, Inc. ( ZBH ) reported third-quarter adjusted earnings of $1.90 per share, up 9.2% year over year, beating the Street estimates of $1.87.

The orthopedic implant maker reported sales of $2.001 billion, up 7% on a reported basis, up 5.4% on a constant currency basis, and 2.8% on an organic constant currency basis, almost in line with the consensus of $2.005 billion.

Knee product sales increased 6.3% to $792.4 million (+5.3% organically), and hip product sales increased 5.1% (+3.8%) to $506.2 million.

Sports Medicine products generated sales of $541.5 million, up 19.2% (+3.6%).

Technology & Data, Bone Cement, and Surgical sales jumped 12.5% (+11.3%) to $161.3 million.

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Adjusted operating margin was 26.5%, while adjusted gross margin was 72.6%.

“Our third quarter performance was anchored by 5.6% organic revenue growth in our critical U.S. business, driven by accelerated adoption of our key new products referred to as the ‘Magnificent Seven,'” said Ivan Tornos, chairman, president, and CEO of Zimmer Biomet ( ZBH ).

“All that said, our strong performance in the U.S. was partially offset by weakness in Latin America, Emerging Markets in Europe, and non-core businesses, which emerged late in the quarter and are being addressed,” Tornos added.

Guidance

For the full-year 2025, Zimmer Biomet ( ZBH ) maintains reported revenue growth guidance, reflecting the latest currency expectations, and narrows its constant-currency and organic constant-currency revenue growth guidance.

The company lowered the upper end of its organic growth outlook to 4.0% from 4.5%, while keeping the minimum unchanged at 3.5%.

Zimmer Biomet ( ZBH ) affirms its fiscal adjusted earnings guidance of $8.10-$8.30 per share versus the consensus of $8.15.

The company also reiterates its fiscal 2025 sales guidance of $8.19 billion-$8.27 billion, compared to the consensus of $8.23 billion, representing revenue growth of 6.7%-7.7 %.

Price Action: ZBH stock is down 15.29% at the last check on Wednesday.

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