I don't own it LE. I do own this one though.
Zimmer rallies to a record on rosy earnings forecast
October 23, 2003 11:02:36 (ET)
CHICAGO, Oct 23 (Reuters) - Shares in Zimmer Holdings Inc. (ZMH,Trade) rallied to a record on Thursday after the orthopedics device maker posted strong third-quarter results and forecast accelerated growth through 2006.
Zimmer, a maker of reconstructive implants such as hips and knees, said it expected its earnings per share to grow 16 percent in 2004 as it integrates Centerpulse AG, which it acquired for about $3.4 billion.
Driven by continued strong demand for artificial hips and knees from aging Baby Boomers and the synergies Zimmer expects to realize from its Centerpulse acquisition, Zimmer forecast 2005 earnings per share to grow by 20 to 25 percent and exceed 25 percent growth by 2006.
The Warsaw, Indiana-based company provided the forecast after the stock market closed on Wednesday when it released its better-than-expected third-quarter earnings.
Shares in Zimmer were up $2.77, or 4.7 percent, to $61.49, after scoring a record at $62.00 in the early going on the New York Stock Exchange.
"We're seeing the impact from the Baby Boomers now, but the most significant impact is still a few years away," said Greg Simpson, an analyst with Stifel Nicolaus & Co.
For the past several quarters Zimmer has led the industry in terms of sales and expects to continue to do so. During the most recent quarter, Zimmer said it took market share from its competitors.
Though Zimmer did not provide details, Simpson reckons Zimmer took share from virtually all of its competitors.
Despite brisk demand for reconstructive implants, which makes up more than three-quarters of the company's sales, Zimmer chairman and chief executive Ray Elliott said he expected the pricing environment to be less favorable in 2004. He said he anticipated price increases of just 2 to 3 percent next year, down from 4 to 5 percent in recent years. |
