* 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 Orthopedic device maker Zimmer Holdings
Inc reported lower-than-expected quarterly revenue as
sales declined at its knee and hip implants segments.
Sales of medical implants from Zimmer and other companies
have been under pressure as Americans delay medical procedures
to save money in a weak economy.
Zimmer said sales in its knee segment fell 2 percent to
$460.7 million, while sales at its hips segment fell 1 percent
to $340.7 million. The two segments together account for more
than 70 percent of the company's total sales.
"I think results were relatively in line ... (though) their
hip and knee businesses, were slightly under consensus number,"
Cowen and Co analyst Josh Jennings said.
"Strong performance by Biomet and J&J
last week raised expectations."
Johnson & Johnson reported a 2.9 percent growth in sales
from medical devices in the Unites States for the second
Zimmer also narrowed its full-year sales growth forecast to
2.5 percent to 3.5 percent, excluding the effects of currency
fluctuations. It had earlier forecast sales growth of 2 percent
to 4 percent.
The company also narrowed its net income forecast for the
year to $4.75 to $4.85 per share. On an adjusted basis, it
expects to earn $5.25 to $5.35 per share.
Analysts, on average, expect full-year earnings of $5.27 per
share, on revenue of $4.53 billion, according to Thomson Reuters
Net sales for the April-June period fell to $1.13 billion
from $1.14 billion last year. Analysts had expected $1.14
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
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 were down about 2 percent at $59.49 on
Thursday on the New York Stock Exchange. They touched a low of
$57.82 earlier in the day.