Stryker Earned $1.91 per Share

Stryker (SYK) reported Q3 earnings of $1.91 per share.

Reported net sales increased 10.6% to $3.6 billion
Organic net sales increased 8.6%
Reported operating income margin of 17.5%
Adjusted operating income margin(1) expanded 50 bps to 25.4%
Reported EPS decreased 20.6% to $1.23
Adjusted EPS increased 13.0% to $1.91, at the high end of guidance range

“We delivered another strong quarter of results, with organic sales growth of 8.6% and adjusted EPS growth of 13%,” said Kevin A. Lobo, Chairman and Chief Executive Officer. “We expect this momentum to continue, which positions us well to deliver above the high end of our initial guidance range for both organic sales and adjusted EPS.”

Sales Analysis

Consolidated net sales of $3.6 billion increased 10.6% in the quarter and 11.5% in constant currency. Organic net sales increased 8.6% in the quarter including 9.3% from increased unit volume partially offset by 0.7% from lower prices.

Orthopaedics net sales of $1.3 billion increased 7.8% in the quarter and 8.8% in constant currency. Organic net sales increased 8.8% in the quarter including 10.1% from increased unit volume partially offset by 1.3% from lower prices.

MedSurg net sales of $1.6 billion increased 9.2% in the quarter and 10.0% in constant currency. Organic net sales increased 8.8% in the quarter including 9.2% from increased unit volume partially offset by 0.4% from lower prices.

Neurotechnology and Spine net sales of $0.7 billion increased 19.4% in the quarter and 20.2% in constant currency. Organic net sales increased 7.6% in the quarter including 7.8% from increased unit volume partially offset by 0.2% from lower prices.

2019 Outlook

Based on our performance to date and anticipated strength in the remainder of the year, we now expect 2019 organic net sales growth to be toward the higher end of our previously guided range of 7.5% to 8.0% and expect adjusted net earnings per diluted share(2) to be in the range of $8.20 to $8.25. For the fourth quarter we expect adjusted net earnings per diluted share(2) to be in the range of $2.43 to $2.48. If foreign currency exchange rates hold near current levels, we expect net sales in the fourth quarter and full year will be negatively impacted by approximately 1.0%, and net earnings per diluted share will be negatively impacted by approximately $0.02 in the fourth quarter and $0.15 in the full year.

Posted by on October 29th, 2019 at 4:53 pm


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