By Nate Wolf

Zimmer Biomet Holdings was the worst performer in the S&P 500 on Wednesday after the maker of knee and hip replacements reported weaker-than-expected quarterly sales.

The company reported adjusted earnings of $1.90 a share for the third quarter, ahead of analysts' consensus estimates of $1.87. However, net sales totaled $2 billion, just off Wall Street's call for $2.01 billion. Zimmer also lowered the top end of its outlook for full-year organic revenue growth, saying it expects gains of 3.5% to 4%, compared to a previous range of 3.5% to 4.5%.

Zimmer stock sank 16% on Wednesday, putting it on track for its largest single-day decline on record and its lowest close since April 1, 2020, according to Dow Jones Market Data.

The company reported weakness in international markets and non-core businesses, such as restorative therapies. Distributor challenges in Latin America and a cancelation of orders in the Middle East and Eastern Europe weighed on results, CEO Ivan Tornos said on a conference call.

Lower-than-expected growth in U.S. knee and hip replacement sales also disappointed Wall Street, said RBC Capital Markets analyst Shagun Singh in a research note Wednesday. The firm has an Outperform rating and a $111 price target on Zimmer stock.

Still, the reconstructive surgery space isn't totally in the doldrums. "Overall, we believe the underlying fundamentals of the recon market is solidly intact," Singh wrote now that Zimmer, Johnson & Johnson, and Stryker all have reported quarterly earnings. The trio make up around 90% of the global reconstruction market, and RBC estimates that the market grew 6.3% in the third quarter.

Johnson & Johnson stock slipped 0.4% on Wednesday, while Stryker declined 2.4%.

Write to Nate Wolf at nate.wolf@barrons.com

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November 05, 2025 12:00 ET (17:00 GMT)

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