Earnings from Stryker and Gilead

The stock market continues to recover from last Friday’s sell-off. The S&P 500 is now just slightly below its pre-Fab high from last Thursday. Our Buy List also continues to do well. We were up 0.72% today to bring us up to +14.02% for the year (not including dividends).
Two of our Buy List stocks reported after the bell (JNJ reported earlier). Gilead Sciences (GILD) reported earnings of 99 cents per share which beat the Street’s estimate of 96 cents per share. Revenues jumped 36.3% to $2.09 billion. That’s a very good number. Gilead also lowered its sales outlook for the year by $200 million due to Obamacare. The stock is down about 2% in the after-hours market but I don’t expect that to last. The stock is now going for about 12 times this year’s earnings estimate. This is a very good buy.
The other news is that Stryker (SYK) reported earnings of 80 cents per share which was two cents more than the Street’s estimate. Revenues were up 12.4% to $1.8 billion. Stryker said it expects full-year EPS of $3.20 to $3.30. This reiterates the guidance they made in January. I always like to hear companies confirm guidance. This just lets shareholders know where they stand. Even saying “what we said before still stands” is nice to hear. For 2009, SYK earned $2.95 per share. Stryker is another very good buy.

Posted by on April 20th, 2010 at 5:23 pm


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