Stryker (NYSE:SYK) reported third-quarter results that beat the Wall Street revenue consensus but missed on earnings, reducing its full-year EPS guidance.
Investors reacted by sending SYK shares down more than 4% to $219.87 apiece by afternoon trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up more than 2%.
The Kalamazoo, Michigan–based ortho device giant reported yesterday evening that it earned $816 million, or $2.14 per share, on nearly $4.5 billion in sales for the quarter ended Sept. 30, 2022. Profits were nearly double what they were during the same quarter a year ago. Revenue grew 7.7%.
Adjusted to exclude one-time items, EPS was $2.12, 11¢ ahead of The Street, where analysts were expecting revenues of $4.46 billion.
“We delivered strong organic sales growth in the quarter, despite product shortages and disruptions to full return of surgeries,” CEO Kevin Lobo said in a news release.
“Worsening foreign currency and ongoing inflation, including premiums on spot buys for key components, pressured our adjusted earnings and will impact our full-year results. We are taking additional actions to address these persistent issues.”
Stryker now expects full-year revenue growth of 8.5–9%, with adjusted EPS between $9.15 and $9.25 per share. During Stryker’s Q2 earnings report, the projection was revenue growth of 8–9%, with adjusted EPS between $9.30 and $9.50.
This story originally ran on Oct. 31, 2022. Updated Nov. 1 with next-day stock price.