Stryker Profit Tops Estimate; Lifts Lower End Of FY Guidance

(RTTNews) - Medical devices company Stryker Corp (SYK) on Tuesday reported first-quarter net earnings of $224 million or $0.58 per share compared with $70 million or $0.18 per share last year.

Excluding items, adjusted earnings for the quarter were $1.11 per share compared with $1.06 per share a year ago.

Stryker, which makes products including implants used in joint replacement and trauma surgeries, said its sales in the quarter rose 3.2% to $2.38 billion from $2.3 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $1.08 per share on revenues of $2.38 billion for the quarter. Analysts' estimates typically exclude special items.

The company said its gross margin for the quarter fell to 65.3% from 66.3% last year.

"We are pleased with our first quarter results, with another strong quarter of nearly 6% organic sales growth and disciplined expense management," said CEO Kevin Lobo.

For the second quarter, the company expects adjusted earnings of $1.15 to $1.20 per share, while analysts expect $1.17 per share.

For the full year 2015, the company now expects adjusted earnings of $4.95 to $5.10 per share, from prior guidance of up $4.90 to $5.10 per share. Analysts expect earnings of $4.99 per share for the year.

Stryker expects 2015 constant currency sales growth of 6.0% to 7.0%, including organic growth of 5.0% to 6.0%. Earlier it expected constant currency sales growth of 5.5% to 7.0%, including organic growth of 4.5% to 6.0%.

Stryker warned that if foreign currency exchange rates hold near current levels, it expects sales in the current quarter and fiscal 2015 to be hurt by 3.5% to 4.5%, and adjusted earnings by $0.25 to $0.30 per share in the year.