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Stryker (SYK) to Report Q3 Earnings: What's in the Cards?
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Stryker (SYK - Free Report) is scheduled to release third-quarter 2022 results on Oct 31, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 0.88%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.26, indicating an increase of 2.7% year over year.
The same for revenues stands at $4.48 billion, suggesting growth of 7.6% from the prior-year quarter.
Factors to Note
Stryker's MedSurg and Neurotechnology segment witnessed substantial sales growth on the back of improvement across all its sub-segments in the second quarter. Improvement in volumes of products contributed to the upside, partially offset by lower prices. This momentum is likely to have continued in the third quarter.
With respect to the Orthopaedics & Spine segment, growth across Hips and Knees subsegments, is likely to have favored the segment's third-quarter performance. The acquisition of Wright Medical is likely to have given a boost to the Trauma & Extremities business as in the first half of 2022.
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 second quarter of 2022. The launch of the new Insignia Hip Stem, along with the Mako 4.1 software, is likely to have driven the Hips business during the second quarter. The robust demand for Mako is likely to have contributed to the Orthopaedics & Spine segment's performance in the to-be-reported quarter.
Stryker completed the acquisition of all the issued and outstanding shares of the common stock of Vocera Communications in February. Per management, the buyout will enable Stryker to enter the fast-growing digital care coordination and communications segment. Investors will likely look for the potential impact of this integration during the third quarter.
However, ongoing supply chain disruptions and hospital staffing shortages are likely to have hurt sales volume growth during the soon-to-be-reported quarter. Procedural volumes in China may have suffered a negative impact due to strict lockdown restrictions across major cities amid rising COVID-19 infection cases. The recent inflationary pressure is likely to have hurt net margin, limiting its growth.
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 -0.37%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Baxter International (BAX - Free Report) has an Earnings ESP of +1.31% and a Zacks Rank of 3.
Baxter’s stock has declined 27.5% so far this year. BAX missed earnings estimates in the last reported quarter. Baxter has a four-quarter earnings surprise of 6.15%, on average.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 2.
McKesson’s stock has gained 41.9% so far this year. MCK beat earnings estimates in the last reported quarter. McKesson has a four-quarter earnings surprise of 13.00%, on average.
AmerisourceBergen has an Earnings ESP of +0.61% and a Zacks Rank of 3.
AmerisourceBergen’s stock has gained 5.8% so far this year. ABC topped earnings estimates in the last reported quarter. AmerisourceBergen has a four-quarter earnings surprise of 2.63%, on average.
Image: Bigstock
Stryker (SYK) to Report Q3 Earnings: What's in the Cards?
Stryker (SYK - Free Report) is scheduled to release third-quarter 2022 results on Oct 31, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 0.88%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.26, indicating an increase of 2.7% year over year.
The same for revenues stands at $4.48 billion, suggesting growth of 7.6% from the prior-year quarter.
Factors to Note
Stryker's MedSurg and Neurotechnology segment witnessed substantial sales growth on the back of improvement across all its sub-segments in the second quarter. Improvement in volumes of products contributed to the upside, partially offset by lower prices. This momentum is likely to have continued in the third quarter.
With respect to the Orthopaedics & Spine segment, growth across Hips and Knees subsegments, is likely to have favored the segment's third-quarter performance. The acquisition of Wright Medical is likely to have given a boost to the Trauma & Extremities business as in the first half of 2022.
Stryker Corporation Price and Consensus
Stryker Corporation price-consensus-chart | Stryker Corporation Quote
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 second quarter of 2022. The launch of the new Insignia Hip Stem, along with the Mako 4.1 software, is likely to have driven the Hips business during the second quarter. The robust demand for Mako is likely to have contributed to the Orthopaedics & Spine segment's performance in the to-be-reported quarter.
Stryker completed the acquisition of all the issued and outstanding shares of the common stock of Vocera Communications in February. Per management, the buyout will enable Stryker to enter the fast-growing digital care coordination and communications segment. Investors will likely look for the potential impact of this integration during the third quarter.
However, ongoing supply chain disruptions and hospital staffing shortages are likely to have hurt sales volume growth during the soon-to-be-reported quarter. Procedural volumes in China may have suffered a negative impact due to strict lockdown restrictions across major cities amid rising COVID-19 infection cases. The recent inflationary pressure is likely to have hurt net margin, limiting its growth.
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 -0.37%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Baxter International (BAX - Free Report) has an Earnings ESP of +1.31% and a Zacks Rank of 3.
Baxter’s stock has declined 27.5% so far this year. BAX missed earnings estimates in the last reported quarter. Baxter has a four-quarter earnings surprise of 6.15%, on average.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 2.
McKesson’s stock has gained 41.9% so far this year. MCK beat earnings estimates in the last reported quarter. McKesson has a four-quarter earnings surprise of 13.00%, on average.
AmerisourceBergen has an Earnings ESP of +0.61% and a Zacks Rank of 3.
AmerisourceBergen’s stock has gained 5.8% so far this year. ABC topped earnings estimates in the last reported quarter. AmerisourceBergen has a four-quarter earnings surprise of 2.63%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.