Zimmer Q1 Profit Tops View, To Buy Biomet In $13.35 Bln Deal

(RTTNews) - Zimmer Holdings, Inc. (ZMH), a manufacturer of orthopedic reconstructive, spinal and trauma devices, said first-quarter net earnings of the company advanced to $221.5 million from $218.6 million in the previous year. Earnings per share edged up to $1.29 from $1.28.

Adjusted earnings per share totaled $1.50, while it was $1.41 last year. On average, 29 analysts polled by Thomson Reuters expected earnings of $1.47 per share. Analysts estimates typically exclude special items.

Net sales grew to $1.162 billion from $1.139 billion in the prior year. Analysts expected revenues of $1.18 billion.

The company reaffirmed its full-year revenue and updated its earnings guidance for 2014. Full-year revenues are still expected to increase 3 to 5 percent on a constant currency basis from 2013. The company continues to estimate that foreign currency translation will decrease revenues by 0.5 percent for the full year, resulting in reported revenue growth between 2.5 and 4.5 percent.

The company now expects full-year 2014 earnings per share to be in a range of $4.90 to $5.10 on a reported basis and $6.00 to $6.20 on an adjusted basis. Prior guidance for full-year 2014 adjusted earnings per share was $6.10 to $6.30. Analysts look for earnings of $6.21 per share.

In a separate release, Zimmer and Biomet, Inc.'s (BMET) parent company said their Boards of Directors have approved a definitive agreement under which Zimmer would acquire Biomet in a cash and stock transaction valued at about $13.35 billion, including the assumption of net debt.

The combined company is expected to be a leader in the $45 billion musculoskeletal industry.

The transaction is expected to close in the first quarter of 2015. Upon closing, the transaction is expected to be double-digit accretive to Zimmer's adjusted earnings per share in the first year.