Zimmer Holdings ( ZMH) gave up ground in post-close trading Wednesday after the orthopedic-device maker reported a severe drop in quarterly earnings and tempered its guidance.

The company said it earned 19 cents a share, a 75% decrease from the year-ago quarter due to a $169.5 million charge to resolve a federal investigation regarding relationships between orthopedic providers and consulting surgeons. This translated to a nonrecurring impact of 72 cents a share.

On an adjusted basis, Zimmer earned 91 cents a share, an 18% increase year over year. Analysts surveyed by Thomson Financial were looking for 91 cents a share on revenue of $907 million.

Zimmer's sales came in just shy of that at $903 million. Reconstructive sales increased 11%, dental sales increased 19% and extremities sales increased 36%.

Looking ahead, the company expects fourth-quarter sales to increase 10% to 11% from the prior year, to between $1.027 billion and $1.032 billion. It scaled back earnings expectations, now forecasting for $1.03 to $1.05 a share, down 11 cents to 13 cents a share from prior guidance. Zimmer said the scale-back is due in part to expected sales reductions and its acquisition of Orthosoft.

Zimmer predicts earning $3.91 to $3.93 a share for the year on revenue of $3.851 billion to $3.856 billion. Analysts surveyed by Thomson Financial are expecting $4.03 a share on revenue of $3.871 billion.

Zimmer shares fell $7.26, or 9.2%, to $72.11 in after-hours trading.