Stryker Beats and Guides Higher

First we had good news from Abbott Labs ($ABT). Now we have more good news from Stryker ($SYK). The company just reported Q3 earnings of 91 cents per share which was two cents better than estimates.

The company also adjusted its full-year earnings range from $3.65 to $3.73 per share to $3.70 to $3.74 per share. That implies Q4 earnings of $1 to $1.04 per share. The CEO said, “We are on track to achieve double digit sales growth in 2011 and adjusted per share earnings at the high end of the range we targeted at the start of the year.”

That’s nice to hear. Here are some more details:

Revenue for the quarter rose 15 percent to $2.03 billion, in line with Wall Street expectations.

Reconstructive products sales rose 8 percent to $901 million as demand for artificial hips and extremities implant systems helped offset a decline in knee replacement sales.

“The recon (reconstructive) market continued the softness that began last year,” MacMillan told analysts on a conference call.

MedSurg product revenue increased by 12 percent on higher sales of surgical, endoscopic and emergency equipment and demand for replacement hospital beds and stretchers.

Neurotechnology and spine products sales jumped 46 percent to $363 million, primarily due to contributions from recent acquisitions.

In last week’s CWS Market Review, I cautioned investors not to chase Stryker. This is a good earnings report although the stock is down slightly in the after-hours market. Stryker is a decent buy here but I’d like to see it a little cheaper before I called it an outstanding buy.

Posted by on October 19th, 2011 at 5:44 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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