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Stryker (SYK) to Report Q2 Earnings: What's in the Cards?

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Stryker Corporation (SYK - Free Report) is scheduled to release second-quarter 2021 results on Jul 27, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 2.5%.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.11, indicating a significant improvement from the year-ago quarter.
The same for revenues stands at $4.11 billion, suggesting growth of 48.7% from the prior-year quarter.

Factors to Note

Stryker’s MedSurg segment comprises surgical instruments plus endoscopic and emergency medical equipment. It has three subsegments — Endoscopy, Instruments and Medical. Rising demand for its safety related products may have contributed to the segment’s revenues in the quarter to be reported. The Zacks Consensus Estimate for the segment’s second-quarter revenues stands at $1.71 billion, suggesting an improvement of 28.9% from the year-ago reported figure.

With respect to Neurotechnology & Spine segment, growth in Interventional spine, neurosurgical and neurovascular businesses might have favored the segment’s to-be-reported quarter’s performance. The Zacks Consensus Estimate for the segment’s second-quarter sales stands at $858 million, indicating an improvement of 57.1% from the prior-year quarter.

Stryker Corporation Price and EPS Surprise

Stryker Corporation Price and EPS Surprise

Stryker Corporation price-eps-surprise | Stryker Corporation Quote

Growth in Mako coupled with strength in Knee, Hips and Trauma and Extremities sub segments might have aided the Orthopaedic segment’s second-quarter performance. In fact, the consensus mark for the segment’s second-quarter revenues stands at $1.56 billion, suggesting growth of 74.8% prior-year quarter.

The company continues to focus on continued expansion of Mako. This growth reflects demand for Stryker’s differentiated Mako robotic technology. This momentum continued in the first quarter of 2021 as well, with advancement in the international markets.

Stryker is committed to sustained expansion of Mako. This growth reflects demand for its differentiated Mako robotic technology. The company continues to observe that a growing percentage of both hip and knee replacement surgeries are being performed with a Mako robot, thereby raising optimism.

Hence, strength in Mako may get reflected in the second-quarter results.

However, unfavorable pricing may have weighed on Stryker’s second-quarter performance.

What Our Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.

Earnings ESP: Stryker has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Stryker carries a Zacks Rank #3.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

HillRom Holdings, Inc. (HRC - Free Report) has an Earnings ESP of +0.56% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cerner Corporation (CERN - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank of 3.

Avanos Medical, Inc. (AVNS - Free Report) has an Earnings ESP of +15.72% and a Zacks Rank of 3.