Zimmer Biomet Holdings, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported net earnings of Zimmer Biomet Holdings, Inc. of $66.6 million or $0.33 per diluted share on net sales of $2,013.1 million compared to net earnings of Zimmer Biomet Holdings, Inc. of $127.0 million or $0.62 per diluted share on net sales of $1,933.6 million reported in the same period last year. Operating profit was $185.3 million against $213.5 million reported last year. Earnings before income taxes was $32.8 million against $133.2 million reported last year. Adjusted net earnings were $434.1 million or $2.14 per diluted share against $428.3 million or $2.09 per diluted share reported last year. Operating cash flow for the fourth quarter was $627 million. Adjusted operating profit in the quarter was $650.7 million, a 140 basis point decrease when compared to the prior year period Operating cash flow for the quarter totaled $627 million, an increase of 42% over $441 million in the fourth quarter of 2015. This result includes $105 million of cash expenditures for acquisition integrations and initiatives related to its synergy program. Free cash flow in the fourth quarter was $478 million, which was $167 million higher than the fourth quarter of 2015. Capital expenditures was $149 million, including $94 million for instruments and $55 million for property, plant and equipment.

For the year, the company reported net earnings of Zimmer Biomet Holdings, Inc. of $302.9 million or $1.50 per diluted share on net sales of $7,683.9 million compared to net earnings of Zimmer Biomet Holdings, Inc. of $147.0 million or $0.77 per diluted share on net sales of $5,997.8 million reported in the same period last year. Operating profit was $827.9 million against $467.3 million reported last year. Earnings before income taxes was $401.6 million against $153.2 million reported last year. Net cash provided by operating activities was $1,632.2 million against $849.8 million reported last year. Additions to other property, plant and equipment was $184.7 million against $167.7 million reported last year. Adjusted net earnings were $1,610.8 million or $7.96 per diluted share against $1,310.5 million or $6.90 per diluted share reported last year.

The company expects constant currency revenue for full-year 2017, as compared to 2016 revenue, to increase between 3.7% and 4.7%, inclusive of approximately 120 basis points of contribution from the LDR transaction. 2017 revenue is expected to increase between 2.2% and 3.2% when compared to full-year 2016 revenue, or to be in a range of $7.855 billion to $7.930 billion. The company expects its full-year 2017 diluted earnings per share to be in a range of $4.37 to $4.67, and in a range of $8.50 to $8.68 on an adjusted basis. The company expects R&D expense for the year to be approximately 4.5% of sales. The company expects net interest and other expense to be in a range of $335 million to $340 million. The company expects an adjusted effective tax rate to be approximately 22.5%. Pretax noncash intangible amortization is expected to be approximately $600 million for the full year 2017. Operating cash flows is expected to be in a range of $1.75 billion to $1.9 billion. Total capital expenditures for the year are expected to be approximately $500 million, inclusive of instrument capital of $330 million. Free cash flow is expected to be in a range of $1,250,000,000 to $1,400,000,000.

For the first quarter of 2017, the company expects revenue growth to be in a range of 2.4% to 3.4%. Revenues are expected to be in a range of $1,950,000,000 to $1,970,000,000. The company expects gross margin and operating expense margin ratios to be similar to those embedded in its full year guidance. Adjusted effective tax rate in the quarter is expected to be approximately 23%. Pretax noncash intangible amortization is expected to be approximately $150 million. Diluted earnings per share are expected to be in a range of $0.91 to $1.01 and adjusted earnings per share is expected to be in a range between $2.08 and $2.13.