Stryker Earned $1.56 per Share for Q3

Stryker‘s (SYK) earnings are out. For Q4, the company earned $1.56 per share. As I said in Friday’s newsletter, this isn’t such a big surprise since they already told us earnings would be between $1.53 and $1.56 per share.

Quarterly sales grew 3.7% to $2.7 billion. That’s 7.0% in constant currency.

“With 2015 organic sales growth of 6.1%, bolstered by a strong fourth quarter increase of 6.4%, our top line results came in above our initial guidance,” said Kevin A. Lobo, Chairman and Chief Executive Officer. “This performance reflects the strength of our diversified revenue model, a commitment to innovation and the competitive advantage of our sales and marketing organizations. Our full year adjusted diluted EPS also exceeded our initial expectation, underscoring our commitment to delivering sales growth at the high end of med tech and leveraged earnings gains. With these results and the current momentum across our businesses, we feel well positioned heading into 2016.”

For all of 2015, Stryker made $5.12 per share. Just for the record, let’s remember Stryker’s guidance for this year. In January, the initial guidance was $4.90 to $5.10 per share. Then in April it went to $4.95 to $5.10 per share.

In July, Stryker brought it up to between $5.06 and $5.12 per share. In October, they raised the low end by one penny per share. A few weeks ago, they raised the low end by another two pennies.

Stryker made $4.73 per share last year.

Sales for the year rose by 2.8% to $9.9 billion. Again, that’s 7.0% in constant currency.

Now for guidance.

We expect 2016 constant currency sales growth in the range of 5.0% to 6.0% and adjusted net earnings per diluted share to be in the range of $1.17-$1.22 and $5.50-$5.70 for the first quarter and full year. If foreign currency exchange rates hold near current levels, we expect net sales in the first quarter and full year of 2016 to be negatively impacted by approximately 1.1% and 1.0% and adjusted net earnings per diluted share to be negatively impacted by approximately $0.02-$0.03 and $0.12-$0.13 in the first quarter and full year.

This was another solid year for Stryker. Here’s the annual EPS trend for Stryker: $2.95, $3.33, $3.72, $4.07, $4.23, $4.73, $5.12. And now make that $5.50 to $5.70 for next year.

Posted by on January 26th, 2016 at 4:13 pm


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