Stryker
The 10-second takeaway
For the quarter ended June 30 (Q2), Stryker met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share improved.
Gross margins grew, operating margins shrank, and net margins improved.
Revenue details
Stryker reported revenue of $2.11 billion. The 24 analysts polled by S&P Capital IQ predicted sales of $2.12 billion on the same basis. GAAP reported sales were 3% higher than the prior-year quarter's $2.05 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.98. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.98 per share. GAAP EPS of $0.85 for Q2 were 7.6% higher than the prior-year quarter's $0.79 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 68.1%, 30 basis points better than the prior-year quarter. Operating margin was 22.0%, 70 basis points worse than the prior-year quarter. Net margin was 15.4%, 30 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.09 billion. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $8.68 billion. The average EPS estimate is $4.11.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,445 members rating the stock outperform and 32 members rating it underperform. Among 422 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 410 give Stryker a green thumbs-up, and 12 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 $61.10.
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