Stryker Raises Guidance

Even though none of our Buy List stocks has reported earnings yet, a second stock of ours raised its guidance today. Well, it was only by a penny, but still, we’ll take it. This morning, Stryker ($SYK) said that it expects to earn $4.05 to $4.07 per share for all of 2012. That’s an increase of one penny to the low end.

Stryker also said full-year sales rose 4.2% to $8.7 billion, compared with its October forecast for 4% to 5.5% sales growth.

Sales for the fourth quarter climbed 5.5% to $2.3 billion, while analysts surveyed by Thomson Reuters were expecting a 2% increase to $2.27 billion.

Stryker also said it will book an estimated fourth-quarter charge of $133 million, or 35 cents a share, for its previously disclosed voluntary recall of Rejuvenate and ABG II modular-neck hip stems.

For 2013, Stryker expects current foreign currency exchange rates to reduce sales by as much as 1% in both the first quarter and full year. On a constant currency basis, the company predicts 3% to 5.5% sales growth.

For 2013, Stryker reiterated its full-year forecast for earnings of $4.25 to $4.40 per share. Wall Street had been expecting $4.30 per share. The stock is up 2.3% this morning.

Posted by on January 9th, 2013 at 11:07 am


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