Earnings Preview: What to Expect from Stryker’s Report

Portage, Michigan-based Stryker Corporation (SYK) offers innovative products and services in MedSurg, Neurotechnology, Orthopedics and Spine that help improve patient and healthcare outcomes. With a market cap of $135.4 billion, Stryker operates as one of the world’s leading medical technology companies.

The healthcare giant is set to unveil its fourth-quarter earnings after the market closes on Tuesday, Jan. 28. Ahead of the event analysts expect Stryker to report a non-GAAP profit of $3.87 per share, up 11.9% from $3.46 per share reported in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 16.7% year-over-year to $2.87, beating analysts’ forecasts by 3.2%.

For the full fiscal 2024, analysts expect Stryker to deliver an adjusted EPS of $12.06, up 13.8% from $10.60 in fiscal 2023. While in fiscal 2025, its earnings are expected to grow 12.1% year-over-year to $13.52 per share.

SYK stock has surged 21.4% over the past 52 weeks substantially outperforming the Health Care Select Sector SPDR Fund’s (XLV) marginal gains but slightly underperforming the S&P 500 Index’s ($SPX) 24.2% returns during the same time frame.

Stryker’s stock prices rose 1.2% in the trading session after the release of its impressive Q3 results on Oct. 29. Driven by the mix of growth in volumes and higher pricing, the company’s net sales surged 11.9% year-over-year to $5.5 billion, which surpassed Wall Street’s expectations by a notable 2.3%. Meanwhile, due to disciplined expense management, Stryker observed an even more impressive growth in profitability. The company reported a robust adjusted operating margin of 24.7% and a 17.3% year-over-year growth in adjusted net earnings to $1.1 billion.

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Moreover, observing the year-to-date performance, strong demand for its capital products, and healthy procedural volumes, the company raised the lower end of its earnings and organic sales guidance, bolstering investor confidence.

The consensus opinion on SYK stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 28 analysts covering the stock, 19 recommend “Strong Buy,” two advise “Moderate Buy,” and seven suggest a “Hold” rating. Its mean price target of $414.35 indicates a 13.8% upside potential from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

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