Zimmer Biomet Stock Falls As Weakness In Latin America And Certain EU Markets Impact Organic Growth Forecast

Core Insights - Zimmer Biomet Holdings, Inc. reported third-quarter adjusted earnings of $1.90 per share, a 9.2% increase year over year, surpassing Street estimates of $1.87 [1] - The company achieved sales of $2.001 billion, reflecting a 7% increase on a reported basis, 5.4% on a constant currency basis, and 2.8% on an organic constant currency basis, nearly matching the consensus of $2.005 billion [1] Sales Performance - Knee product sales rose by 6.3% to $792.4 million, with a 5.3% organic increase [2] - Hip product sales increased by 5.1% to $506.2 million, with a 3.8% organic growth [2] - Sports Medicine products generated sales of $541.5 million, marking a 19.2% increase, with a 3.6% organic growth [2] - Technology & Data, Bone Cement, and Surgical sales surged by 12.5% to $161.3 million, with an 11.3% organic increase [2] Margins and Growth Drivers - Adjusted operating margin was reported at 26.5%, while adjusted gross margin stood at 72.6% [3] - The U.S. business experienced a 5.6% organic revenue growth, driven by the adoption of new products known as the 'Magnificent Seven' [3] Regional Performance and Guidance - Strong U.S. performance was partially offset by weaknesses in Latin America, Emerging Markets in Europe, and non-core businesses [4] - For full-year 2025, the company maintains reported revenue growth guidance and narrows its constant-currency and organic constant-currency revenue growth outlook, lowering the upper end of organic growth to 4.0% from 4.5% [5] - Fiscal adjusted earnings guidance is affirmed at $8.10-$8.30 per share, compared to the consensus of $8.15 [5] - Fiscal 2025 sales guidance is reiterated at $8.19 billion-$8.27 billion, compared to the consensus of $8.23 billion, indicating revenue growth of 6.7%-7.7% [6] Stock Performance - Zimmer Biomet's stock is down 15.29% as of the last check on Wednesday [6]