What To Expect From Stryker’s (SYK) Q4 Earnings

SYK Cover Image

Medical technology company Stryker (NYSE: SYK) will be reporting results this Thursday after market close. Here’s what to expect.

Stryker met analysts’ revenue expectations last quarter, reporting revenues of $6.06 billion, up 10.2% year on year. It was a satisfactory quarter for the company, with organic revenue in line with analysts’ estimates.

Is Stryker a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Stryker’s revenue to grow 10.5% year on year to $7.11 billion, in line with the 10.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.40 per share.

Stryker Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stryker has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2% on average.

Looking at Stryker’s peers in the healthcare equipment and supplies segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Neogen’s revenues decreased 2.8% year on year, beating analysts’ expectations by 7.2%, and Abbott Laboratories reported revenues up 4.4%, falling short of estimates by 2.9%. Neogen traded up 30.4% following the results while Abbott Laboratories was down 11%.

Read our full analysis of Neogen’s results here and Abbott Laboratories’s results here.

Investors in the healthcare equipment and supplies segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Stryker’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $425.68 (compared to the current share price of $353.48).

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