The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stryker met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins shrank, net margins shrank.
Stryker chalked up revenue of $2.30 billion. The 27 analysts polled by S&P Capital IQ wanted to see a top line of $2.28 billion on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $2.22 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 $1.14. The 28 earnings estimates compiled by S&P Capital IQ predicted $1.13 per share. GAAP EPS of $0.71 for Q4 were 32% lower than the prior-year quarter's $1.04 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 68.2%, 90 basis points better than the prior-year quarter. Operating margin was 17.1%, 700 basis points worse than the prior-year quarter. Net margin was 11.6%, 650 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.21 billion. On the bottom line, the average EPS estimate is $1.02.
Next year's average estimate for revenue is $8.96 billion. The average EPS estimate is $4.31.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,445 members out of 1,477 rating the stock outperform, and 32 members rating it underperform. Among 471 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 462 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 $59.68.
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