We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stryker (SYK) Q1 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Stryker Corporation (SYK - Free Report) reported first-quarter 2022 adjusted earnings per share (EPS) of $1.97, which beat the Zacks Consensus Estimate of $1.93 by 2.1%. The bottom line improved 2.1% from the year-ago figure.
GAAP EPS in the quarter was 84 cents, up 6.3% from the prior-year quarter.
Revenue Details
The Michigan-based medical device company reported revenues of $4.28 billion, which surpassed the Zacks Consensus Estimate by 1.8%. The top line improved 8.1% on a year-over-year basis and 9.9% at constant currency (cc).
Revenues by Geography
Revenues in the United States were $3.11 billion, up 11.5% year over year. International sales were up 0.1% to $1.17 billion.
Segmental Analysis
Effective from Dec 31, 2021, Stryker has updated its reportable business segments to align to its new internal reporting structure.
MedSurg and Neurotechnology: This segment reported sales of $2.42 billion, which improved 10.6% on a year-over-year basis. Sales at the segment rose 12.1% at cc. Improvement across all its sub segments contributed to the upside. Per management, the segment saw 10.8% organic growth in the reported quarter.
Stryker Corporation Price, Consensus and EPS Surprise
Orthopaedics and Spine: Sales in the segment amounted to $1.85 billion, up 5.1% year over year and 7.2% at cc. The upside can be attributed to strength in Trauma and Extremities, Hips and Knees sub segments, and strong demand for Mako.
Margins
In the first quarter, adjusted gross profit totaled $2.74 billion, up 5.9% from the year-ago quarter. Adjusted gross margin was 64.1%, down 130 basis points (bps).
Total operating expenses were $2.29 billion, up 11.6% from the year-ago quarter.
Adjusted operating income amounted to $934 million, up 0.6% from the prior-year quarter. Adjusted operating margin was 21.8%, down 170 bps.
Financial Update
The company exited the first quarter with cash and cash equivalents of $1.46 billion, compared with $2.94 billion in the preceding quarter.
Net cash provided by operating activities in the first quarter was $203 million, compared with $452 million in the year-ago period.
2022 Outlook
Taking into consideration the first-quarter performance, dynamic supply chain pressures, uncertainty stemming from the COVID-19 pandemic and solid orders for capital equipment, Stryker now anticipates organic net sales toward the high end of the range of 6% to 8%.
Adjusted EPS is projected to be in the lower end of the band of $9.60 to $10. The Zacks Consensus Estimate for the same stands at $9.72.
Wrapping Up
Stryker exited first-quarter 2022 on a strong note, wherein both earnings and revenues beat their estimates. The company witnessed strong performance across the segments. Growth in international sales is an added positive. Per management, despite the COVID-19 led disruptions, the company managed to deliver robust growth in both of its businesses.
However, contraction in both gross and operating margins is disappointing. Stryker continues to grapple with pricing pressure. Stiff competition in the MedTech space remains a concern.
Zacks Rank
Stryker currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the broader medical space that have announced quarterly results are Qiagen N.V. (QGEN - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Alkermes plc (ALKS - Free Report) .
Qiagen, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of 80 cents, which beat the Zacks Consensus Estimate by 12.7%. Revenues of $628.4 million outpaced the consensus mark by 6.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Qiagen has an estimated long-term growth rate of 11.5%. QGEN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 11.7%.
UnitedHealth, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.7%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. First-quarter revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 23.8%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stryker (SYK) Q1 Earnings and Revenues Surpass Estimates
Stryker Corporation (SYK - Free Report) reported first-quarter 2022 adjusted earnings per share (EPS) of $1.97, which beat the Zacks Consensus Estimate of $1.93 by 2.1%. The bottom line improved 2.1% from the year-ago figure.
GAAP EPS in the quarter was 84 cents, up 6.3% from the prior-year quarter.
Revenue Details
The Michigan-based medical device company reported revenues of $4.28 billion, which surpassed the Zacks Consensus Estimate by 1.8%. The top line improved 8.1% on a year-over-year basis and 9.9% at constant currency (cc).
Revenues by Geography
Revenues in the United States were $3.11 billion, up 11.5% year over year. International sales were up 0.1% to $1.17 billion.
Segmental Analysis
Effective from Dec 31, 2021, Stryker has updated its reportable business segments to align to its new internal reporting structure.
MedSurg and Neurotechnology: This segment reported sales of $2.42 billion, which improved 10.6% on a year-over-year basis. Sales at the segment rose 12.1% at cc. Improvement across all its sub segments contributed to the upside. Per management, the segment saw 10.8% organic growth in the reported quarter.
Stryker Corporation Price, Consensus and EPS Surprise
Stryker Corporation price-consensus-eps-surprise-chart | Stryker Corporation Quote
Orthopaedics and Spine: Sales in the segment amounted to $1.85 billion, up 5.1% year over year and 7.2% at cc. The upside can be attributed to strength in Trauma and Extremities, Hips and Knees sub segments, and strong demand for Mako.
Margins
In the first quarter, adjusted gross profit totaled $2.74 billion, up 5.9% from the year-ago quarter. Adjusted gross margin was 64.1%, down 130 basis points (bps).
Total operating expenses were $2.29 billion, up 11.6% from the year-ago quarter.
Adjusted operating income amounted to $934 million, up 0.6% from the prior-year quarter. Adjusted operating margin was 21.8%, down 170 bps.
Financial Update
The company exited the first quarter with cash and cash equivalents of $1.46 billion, compared with $2.94 billion in the preceding quarter.
Net cash provided by operating activities in the first quarter was $203 million, compared with $452 million in the year-ago period.
2022 Outlook
Taking into consideration the first-quarter performance, dynamic supply chain pressures, uncertainty stemming from the COVID-19 pandemic and solid orders for capital equipment, Stryker now anticipates organic net sales toward the high end of the range of 6% to 8%.
Adjusted EPS is projected to be in the lower end of the band of $9.60 to $10. The Zacks Consensus Estimate for the same stands at $9.72.
Wrapping Up
Stryker exited first-quarter 2022 on a strong note, wherein both earnings and revenues beat their estimates. The company witnessed strong performance across the segments. Growth in international sales is an added positive.
Per management, despite the COVID-19 led disruptions, the company managed to deliver robust growth in both of its businesses.
However, contraction in both gross and operating margins is disappointing. Stryker continues to grapple with pricing pressure. Stiff competition in the MedTech space remains a concern.
Zacks Rank
Stryker currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the broader medical space that have announced quarterly results are Qiagen N.V. (QGEN - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Alkermes plc (ALKS - Free Report) .
Qiagen, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of 80 cents, which beat the Zacks Consensus Estimate by 12.7%. Revenues of $628.4 million outpaced the consensus mark by 6.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Qiagen has an estimated long-term growth rate of 11.5%. QGEN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 11.7%.
UnitedHealth, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.7%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. First-quarter revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 23.8%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.