Stryker Strikes Again: Fool by Numbers

On Jan. 25, Stryker (NYSE: SYK  ) released fourth-quarter earnings for the period ended Dec. 31.

  • International sales for the entire fiscal year were $502 million, up 12.3%, as a result of higher shipments of orthopedic implants and MedSurg equipment supported by favorable foreign currency movements.
  • The company's outlook for 2007 continues to be optimistic, with growth in shipments of orthopedic implants and MedSurg equipment.
  • The company projects that diluted net earnings per share for 2007 will be about $2.42, an increase of 20% over adjusted diluted net earnings per share of $2.02 in 2006.
  • Stryker is very popular in Motley Fool CAPS, sporting the highest rating -- five stars.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$1,462.8

$1,278.5

14.4%

Net Profit

$227.9

$178.4

27.7%

EPS

$0.55

$0.43

27.9%

Diluted Shares

413.8

410.5

0.8%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

65.7%

65.0%

0.7

Operating Margin

20.9%

19.3%

1.6

Net Margin

15.6%

14.0%

1.6

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$1,414.8

$1,056.5

33.9%

Accounts Rec.

$907.0

$770.3

17.7%

Inventory

$677.6

$563.5

20.2%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

No Data

$206.5

N/A

Long-Term Debt

$0.0

$184.2

(100.0%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005

Change

Cash From Operations

$370.4

$366.1

1.2%

Capital Expenditures

$64.8

$85.9

(24.6%)

Free Cash Flow

$305.6

$280.2

9.1%



Find out why Fools always follow the money.

Related Companies:

  • Luxottica Group (NYSE: LUX  )
  • AthroCare (Nasdaq: ARTC  )
  • Baxter International (NYSE: BAX  )
  • Biomet (Nasdaq: BMET  )

Related Foolishness:

How do you think Stryker will do in the next few weeks? How about the next few years? Join CAPS, the Fool's new community-intelligence stock-rating service, and tell more than 20,000 fellow investors how you feel.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

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