Stryker (NYSE: SYK) reported earnings on Oct. 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Stryker met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share expanded.
Gross margins increased, operating margins dropped, net margins increased.
Revenue details
Stryker tallied revenue of $2.05 billion. The 26 analysts polled by S&P Capital IQ looked for net sales of $2.07 billion on the same basis. GAAP reported sales were 1.0% higher than the prior-year quarter's $2.03 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 $0.97. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.98 per share. GAAP EPS of $0.92 for Q3 were 9.5% higher than the prior-year quarter's $0.84 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%, 20 basis points better than the prior-year quarter. Operating margin was 22.5%, 120 basis points worse than the prior-year quarter. Net margin was 17.2%, 110 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.29 billion. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $8.63 billion. The average EPS estimate is $4.09.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,453 members out of 1,484 rating the stock outperform, and 31 members rating it underperform. Among 423 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 414 give Stryker a green thumbs-up, and nine 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 $61.25.
- Add Stryker to My Watchlist.
