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.
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 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.
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.
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.
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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Stryker. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.