Zimmer Biomet Raises, Tightens FY22 Outlook after Q1 Earnings Surpass Estimates

• Zimmer Biomet Holdings Inc's (NYSE:ZBH) Q1 sales increased by 3.9% Y/Y to $1.66 billion (up 6.8% on a constant currency basis), beating the consensus of $1.59 billion.
• Adjusted EPS was $1.61, which came in above the consensus of $1.41 and $1.55 a year ago.
• "We are encouraged by the better than expected results seen in Q1, driven by COVID recovery and continued execution by the Zimmer Biomet team. This performance increases our confidence level for 2022, and we are raising and tightening our guidance accordingly," said Bryan Hanson, Chairman, President, and CEO of Zimmer Biomet.
• Hip segment sales increased 0.9% to $451 million, and Knee product revenues increased 7.9% to $662.8 million.
• Guidance: Zimmer Biomet expects FY22 sales growth of (1.5)% - 0.5% versus earlier guidance of (4)% - flat.
• The company expects an adjusted operating profit margin of 26.5% - 27.5%. 
• It expects to log adjusted EPS of $6.65 - $6.85 (consensus $6.54) versus prior guidance of $6.40 - $6.80. 
• Price Action: ZBH shares are up 2.21% at $123.32 during the market session on the last check Tuesday.