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Stryker (SYK) to Report Q4 Earnings: What's in the Cards?
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Stryker Corporation (SYK - Free Report) is scheduled to release fourth-quarter 2023 results on Jan 30, after market close. In the last reported quarter, the company delivered an earnings surprise of 0.82%.
Q4 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.27 per share, indicating an increase of 9% year over year.
The consensus mark for revenues is pinned at $5.6 billion, implying growth of 7.7% from the prior-year quarter’s reported figure.
Factors to Note
Stryker's MedSurg and Neurotechnology segment witnessed substantial sales growth on the back of robust performance of subsegments in the third quarter. Strong performances in Australia, Europe and emerging markets also boosted revenues. This trend is likely to have continued in the fourth quarter.
Growth across Orthopaedics & Spine’s Hip, Knee, and Trauma and Extremities subsegments might have favored the segment's performance on the back of continued procedural growth, strong uptake of the Insignia Hip Stem and the recent launch of Q Guidance Navigation System.
Stryker witnessed both domestic and international growth (in Japan, Korea and emerging markets) in the first nine months of 2023. It is committed to the sustained expansion of Mako, reflecting robust demand for this differentiated robotic technology. This heightened demand is likely to have contributed to the Orthopaedics & Spine segment's performance in the soon-to-be-reported quarter. However, variability in the hospital environment might have offset some of the gains.
The company’s prospects in 2023 seem promising on the back of strong customer demand for its existing as well as new products. However, ongoing hospital staffing pressure and foreign currency movements are likely to have hurt its sales growth.
Procedural volumes in China might have reflected recovery owing to the removal of lockdown restrictions across major cities in the country. However, the current inflationary pressure is likely to have hurt SYK’s net margin, thereby limiting its growth.
Stryker is working toward alleviating the rising inflationary pressure. It is also taking several cost-cutting initiatives, including restructuring plans. Although these steps might have helped boost the company’s growth, they are also likely to drive expenses in the upcoming quarters. However, the company continues to recognize improved pricing in the past couple of quarters. This is likely to have benefited sales in the fourth quarter as well.
SYK continued its full launch of the 1788 camera system in September that witnessed strong demand. The fourth quarter will be a full quarter, following the launch of the camera system. The strong initial uptake is likely to have continued in the soon-to-be-reported quarter, thereby driving additional revenues.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Stryker this time around. 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 below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is 0.00% for SYK at present. 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 #2 at present.
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 reporting cycle.
The stock has fallen 5.2% in the past year. XRAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 20.65%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank of 2 at present.
The stock has risen 15% in the past year. MMSI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 14.41%.
AMN Healthcare Services (AMN - Free Report) has an Earnings ESP of +3.42% and a Zacks Rank of 3 at present.
The stock has fallen 22.3% in the past year. COO’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 12.66%.
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Stryker (SYK) to Report Q4 Earnings: What's in the Cards?
Stryker Corporation (SYK - Free Report) is scheduled to release fourth-quarter 2023 results on Jan 30, after market close. In the last reported quarter, the company delivered an earnings surprise of 0.82%.
Q4 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.27 per share, indicating an increase of 9% year over year.
The consensus mark for revenues is pinned at $5.6 billion, implying growth of 7.7% from the prior-year quarter’s reported figure.
Factors to Note
Stryker's MedSurg and Neurotechnology segment witnessed substantial sales growth on the back of robust performance of subsegments in the third quarter. Strong performances in Australia, Europe and emerging markets also boosted revenues. This trend is likely to have continued in the fourth quarter.
Growth across Orthopaedics & Spine’s Hip, Knee, and Trauma and Extremities subsegments might have favored the segment's performance on the back of continued procedural growth, strong uptake of the Insignia Hip Stem and the recent launch of Q Guidance Navigation System.
Stryker witnessed both domestic and international growth (in Japan, Korea and emerging markets) in the first nine months of 2023. It is committed to the sustained expansion of Mako, reflecting robust demand for this differentiated robotic technology. This heightened demand is likely to have contributed to the Orthopaedics & Spine segment's performance in the soon-to-be-reported quarter. However, variability in the hospital environment might have offset some of the gains.
The company’s prospects in 2023 seem promising on the back of strong customer demand for its existing as well as new products. However, ongoing hospital staffing pressure and foreign currency movements are likely to have hurt its sales growth.
Stryker Corporation Price and EPS Surprise
Stryker Corporation price-eps-surprise | Stryker Corporation Quote
Procedural volumes in China might have reflected recovery owing to the removal of lockdown restrictions across major cities in the country. However, the current inflationary pressure is likely to have hurt SYK’s net margin, thereby limiting its growth.
Stryker is working toward alleviating the rising inflationary pressure. It is also taking several cost-cutting initiatives, including restructuring plans. Although these steps might have helped boost the company’s growth, they are also likely to drive expenses in the upcoming quarters. However, the company continues to recognize improved pricing in the past couple of quarters. This is likely to have benefited sales in the fourth quarter as well.
SYK continued its full launch of the 1788 camera system in September that witnessed strong demand. The fourth quarter will be a full quarter, following the launch of the camera system. The strong initial uptake is likely to have continued in the soon-to-be-reported quarter, thereby driving additional revenues.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Stryker this time around. 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 below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is 0.00% for SYK at present. 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 #2 at present.
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 reporting cycle.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +6.43% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has fallen 5.2% in the past year. XRAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 20.65%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank of 2 at present.
The stock has risen 15% in the past year. MMSI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 14.41%.
AMN Healthcare Services (AMN - Free Report) has an Earnings ESP of +3.42% and a Zacks Rank of 3 at present.
The stock has fallen 22.3% in the past year. COO’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 12.66%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.