The Rising Influence of Rising Affluence

[DewDiligence]

ZBH quantifies the damage—in part:

https://www.prnewswire.com/news-releases/zimmer-biomet-provides-update-on-covid-19-impact-301036176.html

In March 2020, COVID-19 reached a pandemic level and Zimmer Biomet was impacted by a significant and sudden global decline in elective procedure volumes. As a result, based on preliminary, unaudited financial results, Zimmer Biomet estimates revenue growth for the first quarter 2020 will be approximately -9.5 to -10.5 percent on a reported basis and -8.5 to -9.5 percent on a constant currency basis when compared to the first quarter of 2019.

The Company is currently conducting its closing process for the first quarter of 2020 and is unable to provide a more precise estimate of its full financial results [i.e. no EPS guidance]. Final results for the first quarter are scheduled to be announced on May 11, 2020.

In other words, the hit to 1Q20 EPS was so bad ZBH doesn’t even want to talk about it until the 1Q20 earnings release on 5/11/20.

2Q20 will clearly be even worse than 1Q20 insofar as only 1/3 of 1Q20 was severely affected by the pandemic.

Unsurprisingly, ZBH is withdrawing prior guidance for full-year 2020 results.