Zimmer Biomet Tumbles as Covid Weighs on Sales of Devices -Breaking
Investing.com – Zimmer Biomet stock (NYSE:) plunged 7.5% Monday after the company fell short of for both revenue and earnings.
The company continues to feel the effects of the pandemic, which is a common phenomenon at medical device and healthcare companies. Many patients are continuing to delay getting their treatment.
The ongoing COVID pandemic continued its pressure on our business during Q4. “The Omicron variant spike worldwide and hospital staff shortages impacted the quarter particularly in December,” Bryan Hanson, chairman and CEO stated in a company release.
The company also blamed China’s volume-based procurement in knees, hips and spinal segments for the shortfall in both revenue and earnings.
The fourth quarter net sales dropped 2.3% to $2Billion due to slippages in Asia Pacific and the Americas as these regions were again hit by the Omicron pandemic. Revenue in the hip and knee areas fell, as did revenue.
ZimVie is the separate entity that Zimmer will spin off from its spine and dental operations. This transaction is expected close in March 1.
The company projects revenue will fall by no more than 4% in the current year or remain flat at $6.8billion sales for 2021 after taking into account the sale of its spine and dental business. Adjusted profit per share is seen at $6.60 at the midpoint of the company’s guidance range.
The fourth quarter adjusted profit per share dropped 16 cents, to $1.95
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