Stryker's SYK 1Q sales were in line with Consensus at $2.0B, up 12% reported and 10% ex-FX. Underlying hip and knee sales were below Deutsche Bank's estimate and likely the Street. However, MedSurg made up the difference. After adjusting for acquisitions and FX, sales were up just 4%--far from an impressive quarter but likely in line with the broader MedTech market. EPS rose 12.5% to $0.90 and were $0.01 ahead. Given the stock's relative premium valuation, Deutsche Bank sees the stock as fully valued and as it maintains a Hold and $61 PT.
Commentary suggests price stability and incrementally better mix better thus absent major market share movements from Zimmer and S&N unit volumes decelerated. While Deutsche Bank believes the volumes will recover, it thinks a recovery is farther off than the market expects and the magnitude may also be less as we expect net price/mix to remain negative.
Orthopedic sales were weaker though sales of MedSurg were better. However, net/net organic sales were up just 4% in the quarter. Total company pricing was down 1.9%, which was better than the 2.1% in 4Q though Deutsche Bank chalks it up to a greater MedSurg mix which has better pricing dynamics rather than a sign that ortho pricing is improving.
SYK closed Tuesday at $61.10
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in