Zimmer Holdings Inc. (ZMH) on Thursday reported a 16 percent increase in second-quarter net income, but the surgical product maker's shares slipped in trading after it also lowered the top end of its 2014 earnings forecast.
The Warsaw, Indiana-based company said its profit increased to $176.5 million, or $1.03 per share, from $152.1 million, or 89 cents per share, in the same quarter a year ago.
Earnings, adjusted for one-time gains and costs, came to $1.49 per share. That topped the average analyst forecast by a penny, according to Zacks Investment Research.
The company also said revenue rose 1 percent, to $1.18 billion from $1.17 billion, in the same quarter a year ago. That missed the average Wall Street forecast of $1.2 billion, according to Zacks.
Zimmer now expects adjusted earnings per share for the year to range between $6 and $6.10. That compares to a previous forecast for $6 to $6.20 per share. It also lowered its forecast for revenue growth to between 2 percent and 3 percent from a previous range of 3 percent to 5 percent.
Company shares fell 3.3 percent, or $3.45, to $99.71 Thursday morning. The Standard & Poor's 500 index was almost unchanged.
Zimmer shares had climbed $9.97, or about 11 percent, to $103.16 this year as of Wednesday's close, while the S&P 500 had increased 7.5 percent.