Zimmer Biomet Holdings Inc. Sees $250 Million Trading Volume Drop 35.08% Despite Stock Price Rise

On May 7, 2025, Zimmer Biomet Holdings Inc. (ZBH) experienced a significant decline in trading volume, with a total of $250 million in shares traded, marking a 35.08% decrease from the previous day. Despite this, the stock price rose by 2.02%, marking the second consecutive day of gains and a total increase of 4.03% over the past two days.

Zimmer Biomet Holdings Inc. has revised its 2025 free cash flow projection to a range of $750 million to $850 million, down from the previous estimate of $1.1 billion to $1.2 billion. This adjustment reflects the anticipated financial impact of tariffs and one-time costs associated with the Paragon 28 acquisition.

In its latest earnings report, Zimmer Biomet Holdings Inc. reported an adjusted earnings per share (EPS) of $1.81 for the first quarter of 2025, surpassing the consensus estimate of $1.77. The company's net sales for the quarter were $1.909 billion, representing a 1.1% increase on a reported basis and a 2.3% increase when excluding the impact of foreign currency fluctuations.

Despite exceeding first-quarter sales and earnings expectations, Zimmer Biomet Holdings Inc. has faced challenges that have impacted its stock performance. The company's stock price target was recently lowered by RBC Capital analyst Shagun Singh from $125 to $112, while maintaining an Outperform rating. The management reaffirmed its 2025 organic sales growth targets but revised down its EPS forecast due to the financial impact of the Paragon 28 acquisition and anticipated tariffs.

Zimmer Biomet Holdings Inc. has also reported a decline in certain segments, including Technology & Data, Bone Cement, and Surgical, by 3.5% due to tough comparisons and a shift towards ROSA volume-based placements. The company's adjusted gross margin and operating margin were lower than the prior year, impacted by higher costs of goods sold capitalization, upfront investments, and higher interest expenses.

Looking ahead, Zimmer Biomet Holdings Inc. has provided guidance for 2025, including reported sales growth of 5.7% to 8.2%, EPS of $7.90 to $8.10, and free cash flow of $750 million to $850 million. The company is focusing on innovation and diversification, with new product launches such as the Oxford Partial Cementless Knee and the Iodine-Surface-Treated Hip Stem. Additionally, Zimmer Biomet Holdings Inc. is committed to operational excellence, optimizing its US sales channel, and expanding its ASC offerings and robotic platforms.