Zimmer revenue misses estimates, narrows sales forecast

Thu Jul 26, 2012 7:41am EDT

* Q2 adj EPS $1.34 vs est $1.32

* Q2 rev $1.13 bln vs est $1.14 bln

* Sees FY12 adj EPS $5.25-$5.35

July 26 (Reuters) - Orthopedic device maker Zimmer Holdings Inc reported lower-than-expected quarterly revenue as weakness in its spine and dental businesses persisted and narrowed its full-year sales forecast.

The company expects full-year sales to rise 2.5 percent to 3.5 percent, excluding effects of currency fluctuations. It had earlier forecast a rise of 2 percent to 4 percent.

It also narrowed its net income forecast to $4.75 to $4.85 per share. On an adjusted basis, it expects to earn $5.25 to $5.35 per share.

Net sales for April-June fell to $1.13 billion from $1.14 billion. Analysts had expected $1.14 billion.

Sales at its dental segment fell 6 percent, while sales at spine segment fell 7 percent.

Net earnings, however, rose to $214.5 million, or $1.22 cents per share, from $203.8 million, or $1.06 per share, a year earlier.

Excluding special items earnings were $1.34 per share, beating estimates of 1.32 per share.

Operating expenses fell 8 percent to $541.2 million.

Zimmer shares closed at $61 on Wednesday on the New York Stock Exchange.

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