Earnings from Gilead and Stryker

Today was a rough day for stocks. The S&P 500 dropped 18.91 points or 1.59%. Johnson & Johnson (JNJ) didn’t get hurt too badly by its earnings report from this morning. The stock dropped 57 cents today which was just 0.89%.

After the bell, Gilead Sciences (GILD) reported earnings of 90 cents per share which was three cents higher than the Street’s forecast. Revenue rose 8% to $1.94 billion which was $20 million ahead of the Street’s estimate. The stock is up 2.78% after-hours. Let me caution you not to get too excited by after-hours moves—they don’t guarantee a higher open tomorrow.

Stryker (SYK) also reported very good earnings after the bell. For Q3, the company earned 80 cents per share which is three cents ahead of the Street’s projection. The shares are trading 6.7% higher after-hours.

The company said domestic sales jumped 9.7 percent to about $1.73 billion, while international sales rose 1.7 percent to $593.8 million. Overall, sales of orthopedic equipment rose 1.2 percent to $1.03 billion while sales of surgical equipment jumped 16.1 percent to $738.8 million.

The company tightened its full-year outlook and now expects full-year adjusted profit between $3.27 and $3.30 per share, up from prior guidance of $3.20 to $3.30 per share. It also tightened its sales outlook to an increase between 7 percent and 8 percent from prior guidance of a 5 percent to 8 percent boost.

Analysts are forecasting net income of $3.26 per share on $7.23 billion in revenue for 2010.

The best news today is that Nicholas Financial (NICK) closed at $9.89. Wow! Our Buy List finally snapped its seven-day win streak, but we only fell 0.99% which was 60 basis points better than the S&P 500.

Here’s a recap of our earnings calendar:

Company Ticker Symbol Earnings Date Wall Street’s Estimate
Gilead GILD 19-Oct $0.87
Johnson & Johnson JNJ 19-Oct $1.15
Stryker SYK 19-Oct $0.77
SEI Investments SEIC 20-Oct $0.26
Baxter BAX 21-Oct $0.97
Eli Lilly LLY 21-Oct $1.15
Reynolds American RAI 21-Oct $1.34
Fiserv FISV 26-Oct $1.00
AFLAC AFL 27-Oct $1.39
Moog MOG-A 4-Nov $0.70
Wright Express WXS 4-Nov $0.68
Becton Dickinson BDX 4-Nov $1.25
Sysco SYY 8-Nov $0.51

Posted by on October 19th, 2010 at 4:30 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.