Stryker Corporation’s (SYK - Free Report) Neurotechnology & Spine division has been performing consistently well over the last four quarters. We expect this to shape first-quarter 2018 results, which are scheduled for release on Apr 26.
Click here here to know how the company’s overall Q1 performance is expected to be.
Neurotechnology to Drive Q1 Results
Of late, the Neurotechnology and Spine segment has been witnessing strong demand for products like Target coil, AIS and CMF among the neuro-powered instruments. Further, the Spine business has been riding high on demand for IVS and 3-D printed interbody Tritanium products.
For the first quarter, the Zacks Consensus Estimate for Neurotechnology and Spine revenues is pegged at $561 million, showing an increase of 8.9% on a year-over-year basis.
In the last-reported quarter, the segment delivered sales of $586 million, up 10.3% year over year at cc and organic growth of 10%. This reflects continued strong demand for the company’s products in the segment.
Here we take a sneak peek at the major sub-segments within Neurotechnology and Spine that are poised to gain in the quarter to be reported:
Within the Spine sub-segment, Stryker delivers advanced technology across deformity, MIS, degenerative and interventional spine procedures.
Of the major products under the Spine unit, Aero-AL Anterior Lumbar Interbody and Fixation System, AccuLIF PL and AccuLIF TL Expandable TLIF Technology and ES2 Spinal System deserve a mention. Notably, the ES2 Spinal System is Stryker’s latest spinal fixation system in the LITe platform.
In the recent past, Stryker acquired French company VEXIM, whose portfolio is highly compatible with the company’s Interventional Spine (IVS) business.
Management remains committed to the Spine division and foresees further investments in the segment in the current year. The Zacks Consensus Estimate for the segment’s current-quarter revenues is pinned at $187 million, reflecting a year-over-year increase of 1.6%.
Neurotechnology is a combination of Stryker’s Spinal, Neurovascular and Cranial products and services. The segment’s solid contribution toward expanding the customer base has lent the company a competitive edge in U.S. MedTech industry.
Stryker’s Neurotechnology products include Universal Neuro III, Target Detachable Coils and many more.
The Zacks Consensus Estimate for the segment’s current-quarter revenues is $373 million, showing a 12.7% year-over-year rise.
Zacks Rank & Other Stocks to Consider
Stryker carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Bio-Rad Laboratories (BIO - Free Report) , Myriad Genetics Inc. (MYGN - Free Report) and Abiomed, Inc. (ABMD - Free Report) .
Bio-Rad Laboratories sports a Zacks Rank #1 (Strong Buy). It has long-term expected earnings growth rate of 15%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Myriad Genetics has long-term expected earnings growth rate of 10%. The stock carries a Zacks Rank #2.
Abiomed has long-term expected earnings growth rate of 31.5%. The stock carries a Zacks Rank #2.
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