The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stryker missed slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and earnings per share grew significantly.
Gross margins shrank, operating margins dropped, net margins improved.
Stryker booked revenue of $2.2 billion. The 24 analysts polled by S&P Capital IQ predicted revenue of $2.2 billion. Sales were 11% higher than the prior-year quarter's $2 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.02. The 28 earnings estimates compiled by S&P Capital IQ forecast $1.02 per share on the same basis. GAAP EPS of $1.05 for Q4 were 41% higher than the prior-year quarter's $0.75 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 66.6%, 210 basis points worse than the prior-year quarter. Operating margin was 22.3%, 330 basis points worse than the prior-year quarter. Net margin was 18.1%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.1 billion. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $8.7 billion. The average EPS estimate is $4.10.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,445 members out of 1,476 rating the stock outperform, and 31 members rating it underperform. Among 479 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 469 give Stryker a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stryker is outperform, with an average price target of $60.39.
The health-care investing landscape is littered with also-rans and a few major winners. Is Stryker the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add Stryker to My Watchlist.