Why Zimmer Biomet Made Another Downward Revision to Its Fiscal 2017 Guidance
ZBH’s fiscal 2017 guidance
Zimmer Biomet Holdings (ZBH) announced its 2Q17 earnings results on July 27, 2017, and again made a downward revision to its fiscal 2017 guidance. ZBH reduced its fiscal 2017 guidance during its 1Q17 results announcement on April 27, 2017.
Interested in ZBH? Don't miss the next report.
Receive e-mail alerts for new research on ZBH
ZBH expects its fiscal 2017 sales to be in the range of $7.8 billion–$7.87 billion. This represents a YoY (year-over-year) growth of ~1.8%–2.7% on a constant currency basis. This estimate also includes a ~1.2% contribution from the LDR Holding acquisition. The previous sales guidance for fiscal 2017 showed sales growth in the range of 3.2%–4.2%.
ZBH’s adjusted diluted EPS (earnings per share) for the full fiscal 2017 is expected to be in the range of $8.2 to $8.3, compares with the previous guidance range of $8.5 to $8.6. Investors can participate in Zimmer Biomet’s growth potential by investing in the Vanguard S&P 500 ETF (VOO), which has ~0.11% of its total holdings in VBH.
For 3Q17, ZBH sales are estimated to be in the range of $1.82 billion–$1.85 billion. Currency headwinds are expected to impact the company’s sales by ~0.5%, with constant currency YoY sales growth in the range of -0.5% to 1%.
ZBH’s 3Q17 revenue estimate includes the contribution of ~30 basis points from the LDR acquisition. Fewer billing days in the quarter as compared with last year are expected to impact sales by -130 basis points.