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Mar 31, 2022

Zimmer Biomet Q1 2022 Earnings Report

Zimmer Biomet reported better-than-expected results in Q1 2022, driven by COVID recovery and continued execution.

Key Takeaways

Zimmer Biomet's Q1 2022 net sales from continuing operations were $1.663 billion, a 3.9% increase over the prior year and a 6.8% increase on a constant currency basis. Diluted earnings per share from continuing operations were $0.35, and adjusted diluted earnings per share were $1.61. The company updated its 2022 financial guidance, raising and tightening the range for the full-year outlook.

Net sales from continuing operations increased by 3.9% to $1.663 billion.

Net earnings were $73.0 million, or $337.4 million on an adjusted basis.

Diluted earnings per share were $0.35, with adjusted diluted earnings per share at $1.61.

The company completed the spinoff of ZimVie Inc. on March 1, 2022.

Total Revenue
$1.66B
Previous year: $1.85B
-10.0%
EPS
$1.61
Previous year: $1.71
-5.8%
Gross Profit
$1.16B
Previous year: $1.18B
-1.0%
Cash and Equivalents
$436M
Previous year: $724M
-39.8%
Total Assets
$21.6B
Previous year: $24B
-10.0%

Zimmer Biomet

Zimmer Biomet

Zimmer Biomet Revenue by Segment

Forward Guidance

The Company is updating its full-year 2022 financial guidance to raise and tighten its previous projected ranges for revenue growth, foreign currency exchange impact and adjusted diluted EPS from continuing operations.

Positive Outlook

  • 2022 Reported Revenue Change between -1.5% and 0.5%
  • Adjusted Operating Profit Margin between 26.5% and 27.5%
  • Adjusted Tax Rate between 16.0% - 16.5%
  • Adjusted Diluted EPS from Continuing Operations between $6.65 and $6.85

Challenges Ahead

  • Foreign Currency Exchange Impact of -3.5%

Revenue & Expenses

Visualization of income flow from segment revenue to net income