Warsaw-based Zimmer Biomet Holdings Inc. (NYSE: ZBH) is reporting first quarter net income of $174.7 million, down from $299.4 million during the same quarter last year. Chief Executive Officer Bryan Hanson says the results reflect "supply headwinds" and ongoing quality remediation work at the company’s Warsaw North Campus.
The company says adjusted earnings per share of $1.91, down 10.3 percent over last year, but beating analyst estimates. First quarter net sales were $2 billion, an increase of 2.3 percent over the first quarter the previous year, also topping estimates.
Zimmer Biomet also issued full-year 2018 guidance, including sales growth projections of 1.5-3.5 percent. The company’s adjusted earnings per share projection is in the range of $7.60 -$7.80.
Earlier this month, Zimmer Biomet received U.S. Food and Drug Administration clearance for a device used in shoulder reconstruction surgery. In January, the company’s Sidus Stem-Free Shoulder system also received the clearance.
"As we look out over the course of the next 18 to 24 months, we will stay laser-focused on taking the necessary actions to narrow our gap to market and drive sustained shareholder value," said Hanson. "These actions include successfully driving our ongoing quality remediation program, restoring supply, and scaling up the commercial launch of compelling new technologies, all of which remain on track."