Stryker Beats By Two Cents Per Share

After the closing bell today, Stryker ($SYK) reported fiscal fourth-quarter earnings. If you recall, two weeks ago, the company told us that the numbers were going to be good, and the stock has rallied ever since.

Today Stryker said that it earned $1.14 per share in Q4 which was two cents ahead of expectations. For the entire year, Stryker earned $4.06 per share. That’s an increase from $3.72 per share in 2011.

Overall sales rose 5.5 percent in the quarter from a year ago, rebounding from the third-quarter’s sluggish 1 percent growth rate that resulted from soft pricing, the company said. Demand for orthopedic devices has slumped in the weak economy as patients deferred procedures due to lack of insurance or higher out-of-pocket expenses.

Stryker executives said they were encouraged by sales momentum for hip and knee products going into 2013.

“At the very least, the market is stable to maybe modestly improved in the fourth quarter,” Stryker Vice President Katherine Owen said on a conference call with analysts.

The most important news, in my opinion, is that Stryker sees 2013 earnings ranging between $4.25 and $4.40 per share. The stock has now rallied for 13 of the last 16 days, and one day was unchanged. I suspect that the 2013 figure is a bit too low, although it’s too early to know for sure.

Posted by Eddy Elfenbein on January 23rd, 2013 at 11:06 pm

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