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Stryker (SYK) to Report Q1 Earnings: What's in the Cards?

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Stryker Corporation (SYK - Free Report) is scheduled to release first-quarter 2022 results on Apr 28, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 0.4%.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.93, flat year over year.

The same for revenues stands at $4.20 billion, suggesting growth of 6.2% from the prior-year quarter.

Factors to Note

Despite disruptions that stemmed from COVID-19 resurgence during the fourth quarter of 2021, Stryker's MedSurg and Neurotechnology segment witnessed substantial sales growth on the back of improvement across all its subsegments. This momentum is likely to have continued in the first quarter.

With respect to the Orthopaedics & Spine segment, growth across Trauma and Extremities, as well as Knees subsegments, is likely to have favored the segment's first-quarter performance.

Stryker is committed to the sustained expansion of Mako. This growth reflects the demand for its differentiated Mako robotic technology. The company witnessed both domestic and international growth (in Japan, Korea and emerging markets) in the fourth quarter of 2021. Hence, robust demand for Mako is likely to have contributed to Orthopaedics & Spine segment's performance in the to-be-reported quarter.

Stryker Corporation Price and EPS Surprise

Stryker Corporation Price and EPS Surprise

Stryker Corporation price-eps-surprise | Stryker Corporation Quote

On Feb 23, 2022, Stryker completed the acquisition of all the issued and outstanding shares of the common stock of Vocera Communications. Per management, the buyout will enable Stryker to enter the fast-growing digital care coordination and communications segment.

Per the fourth-quarter 2021 earnings call, the company is above one year into the integration process (Wright Medical deal) and continues to see progress across all regions and functions despite COVID-19-induced headwinds.

These developments are likely to have contributed to the company's performance in the to-be-reported quarter.

Unfavorable pricing may have weighed on Stryker's first-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 -1.25%. 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.

Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here.

Zimmer Biomet's long-term earnings growth rate is estimated at 5.8%. The company's earnings yield of 5% compares favorably with the industry's 0.4%.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 3.

Haemonetics' long-term earnings growth rate is estimated at 10%. The company's earnings yield of 4.8% compares favorably with the industry's 0.4%.

DexCom, Inc. (DXCM - Free Report) has an Earnings ESP of +9.06% and a Zacks Rank of 3.

DexCom's long-term earnings growth rate is estimated at 17.6%. The company's earnings yield of 0.7% compares favorably with the industry's (6.5%).

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.