Zimmer Holdings (ZMH:NYSE) Reports 2Q:04 Earnings - Beats the Street and Sells Off
BY JOHN CHOPACK, AUGUST 2, 2004
It seems that orthopedic investors have it in their mind this earnings season that unless a company crushes its numbers and guides significantly to the upside, they will dump shares. This happened to Stryker, Exactech and Wright Medical and now Zimmer, which was off by 9% in trading early on Thursday.
Zimmer reported revenues of $737 million during the 2Q:04 which was a 14% increase (11% constant currency) over the 2Q:03. This was slightly ahead of analyst expectations of $733 million. The Company reported adjusted earnings of $0.58 during the 2Q:04 which was $0.03 higher than analyst expected.
Although Zimmer upped its 2004 revenue guidance by $15 million to a range of $2.94 to $2.97 billion, this remained slightly below analyst expectations of $2.97. In addition, management upped its earnings guidance by $0.06 to a range of $2.26 and $2.30 per diluted share.
In next weeks issue we will have a more detailed analysis of Zimmer 2Q:04 earnings report and an overview of how the large joint manufacturers compared to each other.
