** 4 weeks later **
The Warsaw, Ind.-based maker of orthopedic devices said it now sees diluted earnings at $1.50 to $1.60 a share, down from its previous forecast of $1.50 to $1.75. Adjusted earnings estimates were cut to a range of $7.90 to $7.95 a share, bringing down the upper end of that spread from $8.
Shares ended the day tumbling by 17.15 to 105.40. Zimmer's violent stock reaction parallels that of other medical suppliers who have reported in recent days. Edwards Lifesciences (EW) plunged more than 17% on Wednesday after its earnings disappointed, while Abiomed (ABMD) stumbled by more than 15% over two days last week.
Boston Scientific (BSX) slipped a few points when it reported earnings, but Stryker (SYK) saw a healthy uptick after it reported, gaining more than 4%.
Zimmer expects its revenue growth to be down as well. Excluding the company's acquisition of LDR Holding, growth is expected run between 1.65% to 1.9%, instead of the previous forecasts of 2.5% to 3%.
The company said net income for the quarter was $158.8 million. Adjusted earnings were $1.79 a share, in line with analyst estimates. But revenue of $1.83 billion fell short of forecasts. Analysts surveyed by Thomson Reuters expected $1.84 billion.
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