Zimmer Biomet Holdings, Inc. (ZBH – Analyst Report), the combined company formed post the Zimmer-Biomet merger, reported its second-quarter 2015 adjusted earnings per share (EPS) of $1.59, up 0.6% year over year. The quarter’s adjusted earnings also topped the Zacks Consensus Estimate by 3 cents or 1.9%. The adjustments include certain non-recurring, pre-tax expenses, including $465.0 million of charges related to the Biomet merger and $89.6 million of special items and certain claims as well as pre-tax amortization expense.
On a reported basis, the company incurred loss per share of 91 cents, a huge 20.9% slash from the year-ago earnings of $1.03 per share.
Revenue Details
In the second quarter of 2015, revenues reached $1.17 billion, down 1.3% (up 5.7% at constant exchange rate or CER) year over year. The top line, however, exceeded the Zacks Consensus Estimate of $1.14 billion. In the quarter, acquired revenue from Biomet totaled $60 million, a 5% contribution at constant exchange rate or CER. Separately, Zimmer recorded 0.7% growth at CER.
Revenues generated in the Americas during the quarter reached $638 million (up 0.4% at CER). On the other hand, the same in EMEA grossed $277 million (down 0.2% at CER) while in Asia-Pacific, the figure was $193 million (up 0.7% at CER).
Segments
Legacy Zimmer’s biggest segment – Reconstructive Implant – recorded revenues of $832 million, up 0.7% year over year at CER. This was due to a 0.4% increase in the Americas, 2% increase in Asia Pacific and 0.6% sales growth in EMEA.
Revenues derived from Knees (within Reconstructive) were up 2.3% year over year at CER to $476 million, while Hips recorded sales of $307 million, down 1.3% compared with the prior-year quarter. Revenues from Extremities were also down 1% year over year at $49 million.
Among the other segments at Zimmer, spine recorded an increase of 4.7% at CER to $52 million while Trauma was down 0.7% at $73 million in the quarter. Surgical and Other also edged down 0.6% to $94 million. Dental, on the other hand, remained flat year over year at $57 million.
