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) Q3 Earnings Beat on Strong Segmental Result
Read MoreHide Full Article
Stryker Corporation (SYK - Free Report) reported third-quarter 2023 adjusted earnings per share (EPS) of $2.46, which beat the Zacks Consensus Estimate of $2.44 by 0.8%. The bottom line also improved 16% year over year.
GAAP EPS was $1.80, down 15.9% from that recorded in the prior-year quarter.
Revenue Details
Revenues totaled $4.91 billion, which beat the Zacks Consensus Estimate of $4.88 billion by 0.6%. The top line also improved 9.6% on a year-over-year basis and 9.3% at constant currency (cc).
Revenues by Geography
Revenues in the United States amounted to $3.68 billion, up 9.5% from the prior-year quarter’s actual. International sales increased 8.7% to $1.23 billion and were up 10% year over year reportedly, and up 8.9% excluding the negative impact of currency.
Segmental Analysis
MedSurg and Neurotechnology: This segment reported sales of $2.86 billion, up 10.5% year over year and 10.3% at cc. Sales growth was driven by increased unit volume as well as higher prices.
Orthopedics and Spine: Sales at the segment amounted to $2.05 billion, up 8.4% year over year and 8% at cc. This growth was driven by increased unit volume, partially offset by lower prices.
Margins
Adjusted gross profit totaled $3.18 billion in the reported quarter, up 13.4% from the year-ago quarter’s figure. Adjusted gross margin was 64.7%, up 210 basis points (bps).
Total operating expenses were $2.23 billion, up 12.8% from the year-ago quarter’s level.
Adjusted operating income totaled $1.15 billion, up 14.8% from that reported in the prior-year quarter. Adjusted operating margin was 23.4%, up 110 bps.
Financial Update
Stryker exited the third quarter with cash and cash equivalents of $1.93 billion compared with $1.48 billion in the preceding quarter.
Cumulative net cash provided by operating activities in the third quarter totaled $2.18 billion compared with $1.62 billion a year ago.
2023 Guidance Raised
Stryker announced its updated guidance for 2023. The company now expects organic growth for total revenues in the 10-10.5% range, up from its previous expectation of 9.5-10.5%.
SYK now expects adjusted EPS in the band of $10.35-$10.45, implying growth of 10.8% at the midpoint of the range. The Zacks Consensus Estimate for the same is pegged at $10.16. The previously guided range for adjusted EPS was $10.25-$10.45.
The company expects unfavorable currency movement to hurt top-line growth and EPS by 0.6% and 10-15 cents, respectively, in 2023.
Stryker Corporation Price, Consensus and EPS Surprise
Stryker exited third-quarter 2023 on a strong note, wherein both earnings and revenues beat their respective Zacks Consensus Estimate. The company witnessed strong performance across its segments in the United States. Strong International sales also buoy optimism. SYK expects the momentum to continue in the last quarter of 2023 on the back of ongoing procedural recovery, a strong order book for capital equipment and an improvement in price.
The company is adopting several cost-cutting measures, including restructuring plans. Stryker’s prospects in 2023 seem promising on the back of strong customer demand for its existing products as well as new launches. Its guidance for 2023 earnings and revenues appears encouraging.
Moreover, the expansion in both gross and operating margins is reassuring. However, stiff competition in the MedTech space is a concern.
Zacks Rank
Stryker currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , DexCom (DXCM - Free Report) and Integer Holdings (ITGR - Free Report) .
Revenues of $10.14 billion outpaced the consensus mark by 3.6%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.76%.
DexCom reported third-quarter 2023 adjusted EPS of 50 cents, which beat the Zacks Consensus Estimate by 47.1%. Revenues of $975 million beat the Zacks Consensus Estimate by 4%. The company currently carries a Zacks Rank #2.
DXCM has a long-term estimated growth rate of 33.6%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.43%.
Integer Holdings reported third-quarter 2023 adjusted EPS of $1.27 and revenues of $405 million, which beat their respective Zacks Consensus Estimate by 21% and 8.7%. It currently carries a Zacks Rank #2.
ITGR has a long-term estimated growth rate of 15.8%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.98%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Stryker (SYK) Q3 Earnings Beat on Strong Segmental Result
Stryker Corporation (SYK - Free Report) reported third-quarter 2023 adjusted earnings per share (EPS) of $2.46, which beat the Zacks Consensus Estimate of $2.44 by 0.8%. The bottom line also improved 16% year over year.
GAAP EPS was $1.80, down 15.9% from that recorded in the prior-year quarter.
Revenue Details
Revenues totaled $4.91 billion, which beat the Zacks Consensus Estimate of $4.88 billion by 0.6%. The top line also improved 9.6% on a year-over-year basis and 9.3% at constant currency (cc).
Revenues by Geography
Revenues in the United States amounted to $3.68 billion, up 9.5% from the prior-year quarter’s actual. International sales increased 8.7% to $1.23 billion and were up 10% year over year reportedly, and up 8.9% excluding the negative impact of currency.
Segmental Analysis
MedSurg and Neurotechnology: This segment reported sales of $2.86 billion, up 10.5% year over year and 10.3% at cc. Sales growth was driven by increased unit volume as well as higher prices.
Orthopedics and Spine: Sales at the segment amounted to $2.05 billion, up 8.4% year over year and 8% at cc. This growth was driven by increased unit volume, partially offset by lower prices.
Margins
Adjusted gross profit totaled $3.18 billion in the reported quarter, up 13.4% from the year-ago quarter’s figure. Adjusted gross margin was 64.7%, up 210 basis points (bps).
Total operating expenses were $2.23 billion, up 12.8% from the year-ago quarter’s level.
Adjusted operating income totaled $1.15 billion, up 14.8% from that reported in the prior-year quarter. Adjusted operating margin was 23.4%, up 110 bps.
Financial Update
Stryker exited the third quarter with cash and cash equivalents of $1.93 billion compared with $1.48 billion in the preceding quarter.
Cumulative net cash provided by operating activities in the third quarter totaled $2.18 billion compared with $1.62 billion a year ago.
2023 Guidance Raised
Stryker announced its updated guidance for 2023. The company now expects organic growth for total revenues in the 10-10.5% range, up from its previous expectation of 9.5-10.5%.
SYK now expects adjusted EPS in the band of $10.35-$10.45, implying growth of 10.8% at the midpoint of the range. The Zacks Consensus Estimate for the same is pegged at $10.16. The previously guided range for adjusted EPS was $10.25-$10.45.
The company expects unfavorable currency movement to hurt top-line growth and EPS by 0.6% and 10-15 cents, respectively, in 2023.
Stryker Corporation Price, Consensus and EPS Surprise
Stryker Corporation price-consensus-eps-surprise-chart | Stryker Corporation Quote
Wrapping Up
Stryker exited third-quarter 2023 on a strong note, wherein both earnings and revenues beat their respective Zacks Consensus Estimate. The company witnessed strong performance across its segments in the United States. Strong International sales also buoy optimism. SYK expects the momentum to continue in the last quarter of 2023 on the back of ongoing procedural recovery, a strong order book for capital equipment and an improvement in price.
The company is adopting several cost-cutting measures, including restructuring plans. Stryker’s prospects in 2023 seem promising on the back of strong customer demand for its existing products as well as new launches. Its guidance for 2023 earnings and revenues appears encouraging.
Moreover, the expansion in both gross and operating margins is reassuring. However, stiff competition in the MedTech space is a concern.
Zacks Rank
Stryker currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , DexCom (DXCM - Free Report) and Integer Holdings (ITGR - Free Report) .
Abbott, carrying a Zacks Rank #2 at present, reported third-quarter 2023 adjusted EPS of $1.14, which beat the Zacks Consensus Estimate by 3.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $10.14 billion outpaced the consensus mark by 3.6%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.76%.
DexCom reported third-quarter 2023 adjusted EPS of 50 cents, which beat the Zacks Consensus Estimate by 47.1%. Revenues of $975 million beat the Zacks Consensus Estimate by 4%. The company currently carries a Zacks Rank #2.
DXCM has a long-term estimated growth rate of 33.6%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.43%.
Integer Holdings reported third-quarter 2023 adjusted EPS of $1.27 and revenues of $405 million, which beat their respective Zacks Consensus Estimate by 21% and 8.7%. It currently carries a Zacks Rank #2.
ITGR has a long-term estimated growth rate of 15.8%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.98%.