(Updates shares in the second paragraph.)
Jan. 26 (Bloomberg) -- Zimmer Holdings Inc., the world’s top seller of hip and knee implants, jumped the most in a month in New York trading after forecasting 2012 profit that may top analyst estimates.
Zimmer climbed 3.2 percent to $59.61 in New York for its biggest one-day jump since Dec. 20. Earnings excluding items this year may reach $5.20 to $5.40 a share, the Warsaw, Indiana- based company said in a statement today. The average of 30 analyst estimates compiled by Bloomberg was $5.22.
The orthopedics maker also reported fourth-quarter profit and sales that topped estimates, boosted by growth outside the U.S. Share repurchases helped the results and a restructuring for 2012, expected to generate annual pretax savings of more than $80 million, bodes well, said Tao Levy, a Collins Stewart LLC analyst in New York.
U.S. implant procedures, which had been declining, “appear to be stabilizing and international looks like it further improved,” Levy said in a note to clients. He rates the stock a “buy” “due to our view that orthopedic trends will improve.”
Fourth-quarter net income surged to $156.1 million, or 87 cents a share, from $34.9 million, or 18 cents, a year earlier, Zimmer said in the statement. Earnings excluding items of $1.36 topped the average analyst estimate of $1.34. Sales of $1.17 billion beat the average estimate of $1.16 billion.
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