Stryker Earns $1.78 per Share

Stryker (SYK) just reported Q4 earnings of $1.78 per share which beat the Street by two cents per share. Net sales grew 16.2% to $3.2 billion. That’s 16.8% growth in constant currency.

For the year, Stryker earned $5.80 per share. They had previously given us a range of $5.75 to $5.80. Later they said they expected earnings at the top of that range. It turns out, they were right. Net sales for 2016 grew 13.9% to $11.3 billion. In constant currency, that’s growth of 14.3%.

“I am pleased with our performance in both the fourth quarter and the full year 2016,” said Kevin A. Lobo, Chairman and Chief Executive Officer. “Fourth quarter organic sales growth of 6.7% versus a strong prior year is impressive and was balanced across Orthopaedics, MedSurg and Neurotechnology and Spine. In addition, we executed well on acquisitions and delivered leveraged adjusted earnings gains. We enter 2017 with good momentum across our businesses and look forward to building on this success.”

Now let’s look at guidance. For Q1, Stryker expects earnings to range between $1.40 and $1.45 per share. Wall Street had been expecting $1.43 per share. For all of 2017, Stryker sees earnings between $6.35 and $6.45 per share. Wall Street had been expecting $6.39 per share.

The company added that if forex rates hold, then they expect to see earnings dinged by $0.03 to $0.04 in Q1, and $0.10 to $0.12 for the year.

The shares are unchanged after-hours.

Posted by on January 24th, 2017 at 4:27 pm


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