Zimmer Biomet Holdings Inc (ZBH) Reports Solid Growth in Q4 and Full-Year 2023 Results
Net Sales: Q4 net sales rose to $1.940 billion, a 6.3% increase year-over-year, with full-year sales up 6.5% to $7.394 billion.
Diluted Earnings Per Share (EPS): Q4 diluted EPS was $2.01, with adjusted diluted EPS at $2.20. Full-year diluted EPS reached $4.88, with adjusted diluted EPS at $7.55.
Geographic Performance: U.S. sales grew by 4.4% in Q4, while international sales saw a 9.1% increase.
Product Categories: Knee and hip categories continued to be strong, with knees seeing a 5.9% increase and hips 3.3% in Q4.
2024 Financial Guidance: Zimmer Biomet projects a 4.5% - 5.5% reported revenue change and an adjusted diluted EPS of $8.00 - $8.15 for the year ending December 31, 2024.
Zimmer Biomet Holdings Inc (NYSE:ZBH) released its 8-K filing on February 8, 2024, disclosing its financial results for the fourth quarter and the full year of 2023. The company, a leader in the medical devices and instruments industry, designs, manufactures, and markets orthopedic reconstructive implants and surgical equipment. With a significant market share in the United States, Europe, and Japan, Zimmer Biomet focuses on large joints, extremities, trauma, sports medicine, and related surgical products.
The company's net sales for the fourth quarter reached $1.940 billion, marking a 6.3% increase over the previous year, and a 6.1% increase on a constant currency basis. For the full year, net sales were $7.394 billion, a 6.5% increase year-over-year, and a 7.5% increase on a constant currency basis. Zimmer Biomet's net earnings for the fourth quarter were reported at $419.2 million, or $458.1 million on an adjusted basis. The full-year net earnings stood at $1.024 billion, or $1.584 billion on an adjusted basis.
Performance and Future Outlook
Zimmer Biomet's President and CEO, Ivan Tornos, expressed satisfaction with the company's performance, attributing the strong results to consistent execution and a robust growth profile in the second half of the year. Tornos is confident in the company's ability to maintain its momentum into 2024 and to continue creating value for stakeholders. The company's focus remains on advancing people and culture, achieving operational excellence, and driving innovation and diversification.
We are pleased to conclude a very successful year with strong fourth quarter results driven by consistent execution, including a healthy second-half growth profile, said Ivan Tornos, Zimmer Biomet's President and Chief Executive Officer. Im confident in our ability to carry our 2023 momentum into 2024 and to create further value for our stakeholders. As we look ahead, we remain laser focused on our priorities to advance people and culture, achieve operational excellence and drive innovation and diversification to deliver on our Mission.
Key financial achievements for Zimmer Biomet include the introduction of HAMMR, an automated Hip Impaction System, and the completion of a $500 million share buyback program. These initiatives reflect the company's commitment to innovation and shareholder return. Additionally, Zimmer Biomet initiated a global restructuring program expected to result in approximately $200 million in cost savings by the end of 2025, highlighting the company's efforts to optimize costs and improve profitability.
For the upcoming year, Zimmer Biomet has provided financial guidance projecting a reported revenue change of 4.5% to 5.5% and an adjusted diluted EPS of $8.00 to $8.15. This guidance reflects the company's positive outlook and expected continued growth.
Investors and stakeholders can access the full earnings report and replay of the investor conference call on Zimmer Biomet's Investor Relations website.
Value investors interested in the medical devices sector may find Zimmer Biomet's consistent performance and strategic initiatives promising. With a focus on innovation, operational excellence, and financial discipline, Zimmer Biomet is well-positioned to navigate the challenges and opportunities ahead.
Explore the complete 8-K earnings release (here) from Zimmer Biomet Holdings Inc for further details.
This article first appeared on GuruFocus.
