DJ Zimmer Biomet 4Q Rev Lower as Covid-19 Delays Medical Procedures
By Matt Grossman
Zimmer Biomet Holdings Inc. Friday recorded slightly lower sales but a stronger profit in the fourth quarter, as a steady sales trend in the Americas helped anchor the company amid revenue declines abroad.
The Warsaw, Ind.-based maker of medical products logged a fourth-quarter profit of $1.59 a share, compared with $1.54 a share in the year-ago quarter. The net earnings attributable to the company were $333.7 million, up from $320.7 million in the previous year's fourth quarter.
On an adjusted basis, the profit was $2.11 a share. Analysts surveyed by FactSet were expecting an adjusted profit of $2.06 a share.
Zimmer Biomet's revenue was $2.09 billion, down from $2.13 billion a year earlier. Analysts had forecast revenue of $2.08 billion.
The Covid-19 pandemic continued to reduce demand for the company's medical devices as patients delayed elective procedures, Zimmer Biomet said. The trend was especially acute in the Europe, Middle East and Africa region, where sales declined 13% year over year in the fourth quarter, including a 20% decline in revenue from knee products.
In the Americas, the source of most of Zimmer Biomet's revenue sales of knee, hip and sports-medicine and trauma products were roughly flat year over year.
Chief Executive Bryan Hanson said the company plans to spin off its spine-and-dental business, a move he said would help the company simplify operations.
The company declined to provide financial guidance for 2021.
Write to Matt Grossman at firstname.lastname@example.org
(END) Dow Jones Newswires
February 05, 2021 06:54 ET (11:54 GMT)
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