Zimmer Biomet (ZBH) Gives Up 15% on Weak Q3

We recently published 10 Stocks Left Behind Amid Wall Street Cheer. Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is one of the worst-performing stocks on Wednesday.

Zimmer dropped its share prices by 15.15 percent on Wednesday to end at $87.55 apiece as investors soured on its organic sales growth forecast amid weakness in international markets, alongside a weak earnings performance in the third quarter of the year.

During its earnings call, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) maintained its overall revenue growth forecast but lowered the organic growth outlook to 4 percent to 4.5 percent, amid last-minute order cancellations.

“Our strong performance in the US was partially offset by weakness in Latin America, Emerging Markets in Europe and non-core businesses, which emerged late in the quarter and are being addressed,” CEO Ivan Tornos said.

In the third quarter of the year, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) saw its net income drop by 7.3 percent to $230.9 million from $249.1 million in the same period last year. Net sales grew by 9.7 percent to $2 billion from $1.8 billion year-on-year.

“Our third quarter performance was anchored by 5.6 percent organic revenue growth in our critical US business, driven by accelerated adoption of our key new products referred to as the ‘Magnificent Seven,’” Tornos said.

”This is highly encouraging, especially as we prepare to launch a second round of new-to-the-world technologies, including the first fully autonomous robot in orthopedics and our iodine-treated hip, the world’s first orthopedic implant with Iodine Technology that inhibits bacterial adhesion and prevents biofilm formation to help address Periprosthetic Joint Infections. We are excited to launch our iodine-treated hip in Japan soon, having received PMDA approval in September,” he added.

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Disclosure: None. This article is originally published at Insider Monkey.