Stryker Earns $2.81 per Share

After the closing bell, Stryker (SYK) reported fiscal Q4 earnings of $2.81 per share. That’s a very good number. It beat estimates of $2.55 per share, and it’s a 12.9% increase over last year’s Q4.

For the quarter, net sales increased 3.2% to $4.3 billion although organic sales were down 1.1%.

For the year, Stryker’s EPS fell 10.0% to $7.43. Stryker still maintains some impressive performance numbers. For example, last year’s operating income margin was 24.4%.

For 2021, Stryker sees earnings ranging between $8.80 and $9.20 per share. Wall Street had been expecting $9.13 per share.

As we recover from the pandemic, we expect 2021 organic net sales growth to be in the range of 8% to 10% from 2019, as this is a more normal baseline given the variability throughout 2020, and expect adjusted net earnings per diluted share(2) to be in the range of $8.80 to $9.20. This includes the previously announced 10 cents of dilution driven by the acquisition of Wright Medical for the full year. Consistent with the pricing environment experienced in both 2019 and 2020, we expect continued unfavorable price reductions of approximately 1% in 2021. If foreign currency exchange rates hold near current levels, we expect EPS will be modestly favorable for the full year. This guidance assumes an ongoing recovery in our key geographies leading to more normalized elective procedure levels during the second quarter of 2021. We will not be providing quarterly guidance.

Posted by on January 27th, 2021 at 4:20 pm


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