Stryker's Foolishly Important Free Cash Flow Grows: Fool by Numbers
By Motley Fool Contributors
July 20, 2007
Recommended (2)
On July 19, Stryker (NYSE: SYK) released second-quarter earnings for the period ended June 30.
- Sales surged 16%, and EPS was up 11.5%.
- Operating and net margins fell slightly, but not by an amount worth worrying about.
- On June 4, the company sold its outpatient physical therapy business to Water Street Healthcare Partners for roughly $150 million in cash.
- For fiscal 2007, the company anticipates net earnings per share to be $2.40, and the net sales increase is expected to range between 12% to 13%.
- Stryker is a five-star stock in Motley Fool CAPS.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007
|
Q2 2006
|
Change
|
|
Sales
|
$1,463.7
|
$1,261.8
|
16.0%
|
|
Net Profit*
|
$240.1
|
$212.1
|
13.2%
|
|
EPS
|
$0.58
|
$0.52
|
11.5%
|
|
Diluted Shares
|
416.9
|
410.7
|
1.5%
|
*Income from continuous operations
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007
|
Q2 2006
|
Change*
|
|
Gross Margin
|
69.6%
|
68.8%
|
0.8
|
|
Operating Margin
|
21.5%
|
22.9%
|
(1.4)
|
|
Net Margin
|
16.4%
|
16.8%
|
(0.4)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q2 2007
|
Q2 2006
|
Change
|
|
Cash + ST Invest.
|
$1,780.2
|
$867.7
|
105.2%
|
|
Accounts Rec.
|
$940.5
|
$842.1
|
11.7%
|
|
Inventory
|
$733.4
|
$644.1
|
13.9%
|
Liabilities data was not provided.
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007
|
Q2 2006
|
Change
|
|
Cash From Ops.
|
$210.9
|
$195.8
|
7.7%
|
|
Capital Expenditures
|
$39.1
|
$49.5
|
(21.0%)
|
|
Free Cash Flow
|
$171.8
|
$146.3
|
17.4%
|
Free cash flow is a Fool's best friend.
Related Foolishness:
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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
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