Stryker stock falls despite revenue, profit gain

KALAMAZOO — Stryker Corp. (NYSE: SYK), the medical device maker, posted revenue of $3.32 billion in the second quarter ended June 30, up 10.3 percent from $3.01 billion a year earlier.

Net income was $452 million, or $1.19 a share, up 15.6 percent from $391 million, or $1.04 a share a year earlier.

For the six months, revenue was $6.56 billion, up 10 percent from $5.97 billion a year earlier. Net income was $895 million, or $2.39 a share, up 7.2 percent from $835 million, or $2.23 a share, a year earlier.

“We continue to execute on our strategy and delivered another strong quarter of organic sales growth, adjusted operating margin expansion and adjusted net earnings per diluted share,” said Kevin A. Lobo, chairman and CEO. “Our diversified and decentralized business unit model combined with strong talent and culture continue to serve us well. We have raised our guidance to reflect the strong results and positive outlook for the remainder of the year.”

Investors, however, was not impressed. The company’s shares fell 3.4 percent in after-hours trading.

Among the company’s businesses, orthopaedics net sales of $1.2 billion increased 8 percent in the quarter and 6.6 percent in constant currency. MedSurg net sales of $1.5 billion increased 10 percent in the quarter and 9.2 percent in constant currency. Neurotechnology and Spine net sales of $0.6 billion increased 20.1 percent in the quarter and 18.5 percent in constant currency.

The company said it now expects 2018 organic net sales growth to be 7 percent to 7.5 percent, and earnings per share to come in at $7.22 to $7.27.

To listen to a conference call discussing these results, visit www.stryker.com or call (855) 859-2056 (domestic) or (404) 537-3406 (international) and enter conference ID number 7449506.

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