Stryker 3Q Results Decrease On One-Off Charges

Stryker Corporation SYK reported 3Q 2014 results Thursday.

The company reported net earnings of $57 million, a decrease of 44.7 percent in the quarter compared to 2013 and diluted net earnings per share of $0.16 decreased 40.7 percent compared to prior year.

Reported net earnings included charges for the Rejuvenate, ABG II and Neptune recalls, tax impacts related to the establishment of the European regional headquarters and a planned cash repatriation, acquisition and integration related charges, additional cost of sales for inventory sold that was "stepped up" to fair value related to acquisitions, restructuring and related charges, and certain charges related to regulatory and legal matters.

Excluding the above charges, adjusted net earnings were $439 million for the quarter, an increase of 10.3 percent, and adjusted diluted net earnings per share were $1.15 increased 10.6 percent in the quarter compared to 2013. The average analyst estimate was $1.14 per share.

Net sales were $2.4 billion, above estimates of $2.32 billion and above $2.15 billion for the same period in 2013.

"The strength of our diversified model was evident again in the third quarter as organic sales growth accelerated to 8 percent. These results put us on track to deliver on our full year sales and earnings guidance," said Kevin A. Lobo, Chairman and Chief Executive Officer. "We also launched our European headquarters, which will strengthen our business in the region and provide strong financial benefits, including a cash repatriation of approximately $2 billion planned in the second half of 2015."

Stryker Corporation closed at $79.20 on Thursday.