On April 18, Stryker (NYSE:SYK) released first-quarter earnings for the period ended March 31.
- Net sales were up 12.7%, with the company's top performance coming from its MedSurg unit.
- The company's net profits grew 65.1%, aided by improved margins.
- Free cash flow became positive, thanks to higher net earnings and favorable changes in working capital.
- The company projects that diluted EPS for fiscal '07 will be $2.42, representing an increase of 20% over fiscal '06.
- Stryker has the top five-star rating in Motley Fool CAPS, ahead of competitors like Biomet (NASDAQ:BMET) and Smith & Nephew (NYSE:SNN).
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Sales |
$1,489.3 |
$1,320.9 |
12.7% |
|
Net Profit |
$243.5 |
$147.5 |
65.1% |
|
EPS |
$0.59 |
$0.36 |
63.9% |
|
Diluted Shares |
416.0 |
411.3 |
1.1% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
66.7% |
65.7% |
0.9 |
|
Operating Margin |
21.8% |
16.8% |
5.0 |
|
Net Margin |
16.4% |
11.2% |
5.2 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,466.2 |
$874.1 |
67.7% |
|
Accounts Rec. |
$936.6 |
$841.8 |
11.3% |
|
Inventory |
$710.2 |
$595.6 |
19.2% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$0.1 |
$99.6 |
(99.9%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$152.7 |
$20.7 |
637.7% |
|
Capital Expenditures |
$41.9 |
$51.9 |
(19.3%) |
|
Free Cash Flow |
$110.8 |
($31.2) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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