Zimmer Biomet Q1 2020 Earnings Report
Key Takeaways
Zimmer Biomet reported a 9.7% decrease in net sales to $1.784 billion for the first quarter of 2020. The company experienced a net loss of $509 million, which includes goodwill impairment, but net earnings on an adjusted basis were $354 million. The COVID-19 pandemic significantly impacted elective procedure volumes, negatively affecting the company's performance.
First quarter net sales decreased by 9.7% to $1.784 billion, or 8.9% on a constant currency basis.
The company reported a diluted loss per share of $2.46, while adjusted diluted earnings per share were $1.70.
COVID-19 pandemic significantly impacted elective procedure volumes, negatively affecting performance.
The company refinanced $1.5 billion in debt, renegotiated its $1.5 billion revolver, and secured an additional $1.0 billion credit facility.
Zimmer Biomet
Zimmer Biomet
Zimmer Biomet Revenue by Segment
Zimmer Biomet Revenue by Geographic Location
Forward Guidance
Zimmer Biomet expects the decline in elective procedure volumes observed in the final weeks of the first quarter to continue to have a significant negative impact in the second quarter of 2020. Given the uncertainty around the scope and duration of COVID-19 and its ongoing impact on the deferral of elective procedures, the Company is currently unable to quantify the expected impact on its results of operations, financial condition and cash flows, which could be material, for 2020 and is therefore not providing full-year financial guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income