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Zimmer Biomet: 10 2Q takeaways

July 31, 2017

Zimmer Biomet reported slight sales growth in the second quarter of 2017.


Here are 10 things to know:


1. Net sales were $1.9 billion, a 1.1 percent year-over-year increase. However, excluding the contributions from LDR — a spine-focused device company Zimmer Biomet acquired last year — net sales dropped 1.3 percent.


2. Quarterly net earnings reached $184.2 million, a 4.3 percent increase over last year.


3. Operating cash flow for the second quarter was $440.5 million. The company made around $650 million of net debt repayments through the first half of the year.


4. Zimmer Biomet reported $48.4 million paid in second quarter dividends, at $0.24 per share.


5. The company expects revenue to reach $7.8 billion to $7.87 billion for the full year, a 1.8 percent to 2.7 percent growth over 2016. This is lower than the previously expected 2.3 percent to 4.2 percent growth including the contributions from LDR.


6. Zimmer Biomet expects third quarter revenue to hit $1.815 billion to $1.845 billion, a -0.5 percent to 1 percent difference over the same period last year.


7. Sales in the Americas grew 2.3 percent in the second quarter, but EMEA sales dropped 4.9 percent.


8. Knee and hip sales dropped in all markets except the Asia Pacific; knee sales in the Americas were down 2.7 percent and dropped 2.4 percent overall while hip sales were down 1.4 percent in the Americas and 1.5 percent overall.


9. Spine sales grew 33 percent in the second quarter year-over-year while dental sales dropped 6.4 percent. In the first half of the year, spine sales were up 32.5 percent.


10. Zimmer Biomet’s former CEO David Dvorak announced his departure shortly after the end of the second quarter. The company’s Senior Vice President and CFO Daniel Florin is currently the interim CEO.


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