Zimmer 3Q income slips 7 percent on lower sales
WARSAW, Ind. (AP) — Zimmer Holdings Inc. said Thursday its net income fell 7 percent in the third quarter on lower sales of hip and knee implants.
Zimmer said sales of knee and hip implants both declined 2 percent, and revenue from spinal implants dropped 10 percent. The company lowered the top end of its annual net income guidance, saying it now expects to adjusted profit between $5.25 and $5.30 per share, rather than $5.25 to $5.35 per share.
That's still in line with Wall Street expectations. Analysts, on average, expect 2012 adjusted profit of $5.27 per share, and estimates range from $5.20 to $5.31, according to estimates compiled by FactSet.
For the three months ended Sept. 30, the company said its net income slid to $178.1 million, from $191.5 million. Because the company repurchased around 13.5 million shares of stock over the last year, its per-share income rose to $1.02 from $1.01.
In the latest quarter Zimmer said its net income totaled $1.15 per share if one-time costs are excluded. Its revenue totaled $1.03 billion, down $6 million, or 1 percent.
Analysts were forecasting net income of $1.13 per share and $1.03 billion in revenue.
Zimmer said its knee implant revenue fell to $407.4 million and hip implant revenue decreased to $308.5 million. Spinal revenue fell to $49.8 million. Revenue from extremities implants increased 10 percent to $39.7 million, while trauma products rose 8 percent to $74.5 million and revenue from surgical and other products grew 9 percent to $90.9 million
Shares of Zimmer Holdings closed at $62.28 on Wednesday, up 16.6 percent since the start of the year.