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% |
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) |
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.
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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.
