Earnings Preview: Stryker's EPS, Revenue Expected to Rise
Stryker (NYSE: SYK) announces its next round of earnings this Wednesday, October 19, 2011. Here's Benzinga's advanced look at Stryker's third quarter earnings report.
Earnings and Revenue:
Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of 89 cents/share and revenues of $2.04 billion. Stryker's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 80 cents/share on revenues of $1.77 billion. Can Stryker manage the estimated 11.2% rise in EPS and 15.3% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Wednesday to find out.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $0.90 | $0.89 | $0.90 | $0.77 |
| EPS Actual | $0.90 | $0.90 | $0.93 | $0.80 |
Stock Performance:
Shares of Stryker were trading at $50.18 as of October 13, 2011. Shares are down 5.6% year to date. For a full 12 months, the return has risen by 4.1%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
- Long-term shareholders are already enjoying 12-month gains prior to the announcement
Average Stock Rating:
The average rating by analysts for Stryker is a Moderate Buy. This rating has strengthened over the past three months.
Competitors:
Want to check out the performance of Stryker closest competitors? Take a look at some of the company's peers in the healthcare sector.
- ArthroCare (NASDAQ: ARTC): Moderate Buy with a $0.35 recent quarter EPS
- Alphatec Holdings (NASDAQ: ATEC): Moderate Buy with a -$0.02 recent quarter EPS
- CONMED (NASDAQ: CNMD): Hold with a $0.35 recent quarter EPS
- Exactech (NASDAQ: EXAC): Moderate Buy with a $0.28 recent quarter EPS
Stryker is in the medical products industry, which has experienced price/earnings growth of 1.4%.
Finally, a description of the company's main areas of operation: Stryker is a medical technology firm that produces a range of products in medical implants, surgical technologies and emergency medical equipment.
Take Action:
Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.
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