(Reuters) – Zimmer Biomet Holdings (NYSE:ZBH) Inc raised its annual sales and profit forecasts on Tuesday, banking on strong demand for its knees and hips products amid a sustained recovery in surgical procedures in the United States.<\/p>\n\n\n\n
Shares of the Indiana-based medical device maker rose 3.72% to $144 before the bell, also buoyed by better-than-expected first-quarter results.<\/p>\n\n\n\n
Zimmer Biomet’s upbeat outlook comes after several medical device makers, including\u00a0Stryker\u00a0Corp (NYSE:SYK) and larger rival\u00a0Abbott Laboratories\u00a0(NYSE:ABT), raised their forecasts as easing staffing shortages at hospitals aid a recovery in medical procedures.<\/p>\n\n\n\n
Zimmer Biomet, which offers products such as knee replacements and surgical robots, now expects a profit of $7.40 to $7.50 per share for 2023, compared with $6.95 and $7.15 per share previously forecast. Analysts on average were expecting a profit of $7.06 per share, according to Refinitiv data.<\/p>\n\n\n\n
The company expects revenue to grow 5%-6% this year, compared with its previous forecast of 1.5%-3.5%.<\/p>\n\n\n\n
“Investor focus is largely on Zimmer’s ability to take a share in the knee and head market and the adoption of the company’s new launches,” BTIG analyst Ryan Zimmerman told Reuters before the results.<\/p>\n\n\n\n
Analysts have highlighted that Zimmer’s smart implant that was authorized by the U.S. health regulator in November for cementless knee replacement procedures will have a broad market opportunity.<\/p>\n\n\n\n
The medical device maker’s revenue rose 10% to $1.83 billion in the first quarter, beating analysts’ average estimates of $1.70 billion.<\/p>\n\n\n\n
Excluding items, the company made a profit of $1.89 per share for the quarter ended March 31, compared with analysts’ estimates of $1.64 per share.<\/p>\n