By Dean Seal

Zimmer Biomet Holdings cut its adjusted profit outlook for the year but now forecasts higher revenue to account for foreign currency tailwinds, an acquisition and tariffs.

The medical-device maker said it now expects adjusted earnings of $7.90 to $8.10 a share for the year, a 25-cent reduction from its prior guidance. But reported revenue is expected to be up 5.7% to 8.2%, rather than 1% to 3% as previously projected.

While shifting currency rates were expected to be a 1.5% to 2% drag on the top line, they are now on track to have no effect on or even lift revenue slightly.

The revised outlook also incorporates the impact of Zimmer Biomet's acquisition of orthopedic foot and ankle company Paragon 28 and current tariff proposals, the company said.

For the first quarter, Zimmer Bioment posted a profit of $182 million, or 91 cents a share, compared with $172.4 million, or 84 cents a share, in the same quarter a year earlier.

Stripping out one-time items, adjusted earnings were $1.81 a share. Analysts surveyed by FactSet had been expecting $1.77 a share.

Sales ticked up 1.1% to $1.91 billion, ahead of analyst forecasts for just under $1.9 billion, according to FactSet.

Shares rose 2.4% to $104.88 in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 05, 2025 06:50 ET (10:50 GMT)

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