The Streak Is Over

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The streak had to end eventually. Even Cal Ripken Jr.'s streak came to an end. After 31 consecutive quarters of double-digit sales growth, Stryker (NYSE: SYK) finally had an off quarter.

Stryker wasn't alone; the fourth quarter was hard on many medical device makers. Previous high-growers like Intuitive Surgical (Nasdaq: ISRG), Natus Medical (Nasdaq: BABY), and Hologic (Nasdaq: HOLX) all got knocked back down to earth.

Revenue came in just 3.6% higher than the year-ago quarter. Sales of orthopaedic implants grew at 4.2% -- fairly consistent with Johnson & Johnson's (NYSE: JNJ) Depuy division, which managed a 3.6% increase last quarter. Both were hurt by the stronger dollar knocking down international sales, which doesn't bode well for Zimmer (NYSE: ZMH) and Smith & Nephew (NYSE: SNN), both of which derive around half of their sales from outside the U.S.

Sales of the normally prolific medical and surgical equipment division grew even slower at just 2.8% year over year. Hospitals just aren't interested in spending money on capital expenses when their own endowments have been hurt by this funky market.

Don't expect those double-digit growth rates to come back anytime soon. Stryker is guiding for a 6% to 9% increase in sales this year. Fortunately management thinks it should be able to squeak more out of the bottom line with estimated earnings per share of $3.12 to $3.22, an increase of 10% to 14% over 2008 after subtracting out restructuring charges.

The days of crazy growth at Stryker are over, but the company is also a lot cheaper, 40% off its 52-week high. Just like the Yankees will one day win the World Series again, I think it's likely that Stryker will get back to starting a new streak fairly soon.

More Foolishness:

• Now is a fantastic time to be a value investor.
• Growth stocks aren't bad either.
• Heck, even international looks cheap.