Zimmer Biomet lowers 2025 profit forecast on acquisition costs, tariff uncertainty

Reuters

Mon, May 5, 2025, 7:40 AM 2 min read

(Reuters) -Zimmer Biomet Holdings on Monday lowered its full-year adjusted profit forecast, as the medical device maker anticipates a hit from its recent acquisition of Paragon 28, currency volatility, and proposed tariffs.

Investors and analysts are closely monitoring how medical device makers will handle any impact from the Trump administration's tariffs and whether they expect benefits from foreign currency fluctuations.

Earlier this year, Zimmer said that it would acquire medical device firm Paragon 28 for $1.1 billion, to expand its portfolio of orthopedic surgical devices.

Zimmer expects 2025 adjusted profit per share in the range of $7.90 to $8.10, compared with its prior view of $8.15 to $8.35 per share. Analysts were expecting annual profit of $8.19 per share, according to data compiled by LSEG.

The Warsaw, Indiana-based company expects currency swings to have a negligible to marginally positive effect on its 2025 revenue, revising its initial forecast of a 1.5% to 2% negative impact to a range of 0% to 0.5%.

Last week, peer Stryker Corp reduced its 2025 profit outlook and said it anticipated a $200 million tariff impact in the year.

However, Zimmer's first-quarter profit and revenue both came in slightly above expectations, due to strong demand for its devices used in hip and knee procedures.

Combined sales at Zimmer's hips and knees units came in at $1.29 billion, compared to $1.28 billion, a year ago.

On an adjusted basis, the company posted a profit of $1.81 per share for the quarter ended March 31, topping estimates of $1.77 per share.

Zimmer's first-quarter revenue came in at $1.91 billion, slightly ahead of estimates of $1.90 billion.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Shailesh Kuber)