Watching Zimmer Biomet; Traders Circulate CEO Comments Made At The Wells Fargo 2024 Healthcare Conference Saying "Its Newly Implemented Enterprise Resource Planning Failed To Perform As Expected, And The Issue Is Likely To Impact Its H2 Revenue, The Issue Will Likely Impact Around 1% Of Its Revenue This Year And That By The Time We Exit Q4, It Should Be Largely Resolved"

Shares of Zimmer Biomet (NYSE:ZBH) fell sharply on Thursday after the orthopedic device maker said its newly implemented enterprise resource planning (ERP) failed to perform as expected, and the issue is likely to impact its H2 revenue.

At the Wells Fargo 2024 Healthcare Conference on Thursday, CEO Ivan Tornos said that in July, the company switched from its legacy ERP platform, DCS, to SAP.

"Things worked well at first, the usual glitches," he noted, adding, "as we get into the August time frame, we identified that it didn't work as expected. That is certainly going to create some challenges when it comes to revenue in the second half of 2024."

Based on current data, Tornos said that the issue will likely impact around 1% of its revenue this year. "By the time we exit Q4, it should be largely resolved," he added.