Zimmer Holdings (ZMH) NewsBite - Zimmer Profit Slips Missing Estimates

Posted on Wednesday, July 23, 2008 11:09 AM

Zimmer Holdings Inc. (ZMH) opened at 64.02. So far today, the stock has hit a low of 64.02 and a high of 64.80. ZMH is now trading at 64.72, down 6.16 (-9.62%). The stock hit its 52 week high of 90.00 in July and set its 52 week low of 63.00 in November. ZMH has been trading lower for most of the past year. Orthopedic implant maker Zimmer Holdings announced yesterday evening its second-quarter profit fell 2% to $227.1 million on a surge in operating costs. The company posted earnings of 99 cents per share on sales of $1.08 billion, while analysts expected a profit of $1.03 per share on revenue of $1.07 billion. Zimmer also slashed its full-year outlook, citing an anticipated decline in hip product sales, weakness in the dental market and slower-than-expected-uptake with its new products. Technical indicators for the stock are neutral and improving while S&P gives ZMH a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a September bear-call credit spread above the $75 range. ZMH stock could rise up to 15.9% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]