Stryker Reports Decline in Earnings; Beats Estimate (SYK)
Medical product supplier, Stryker Corporation(SYK) reported declined profits on Thursday, but beat analysts estimates..
The Kalamazoo, MI based company reported fourth quarter net income of $270 million, or 71 cents per share, down -32% from $401 million, or $1.05 per share last year. Excluding special items, earnings were reported at $1.14 per share, beating analysts estimate of $1.12.
STK saw a 6% increase in revenue, coming in at $2.34 billion from $2.22 billion last year. Analysts expected revenue of $2.34 billion.
Included in the quarters revenue was a 7% growth to the company’s reconstructive products unit, and a 2% increase in its MedSurg equipment unit. SYK also saw a 10% upside from their neurotechnology and spine products.
The loss in profits was partially caused by a $133 million charge for the recall of hip implant devices.
The company expects to see 2013 earnings in the range of $4.25 to $4.40 per share. Analysts are expecting earnings of $4.31 per share.
Stryker shares were mostly flat during premarket trading Thursday. The stock has increased 16% in the past year.
The Bottom Line
Shares of Stryker (SYK) have a 1.71% dividend yield, based on last night’s closing stock price of $61.87. The stock has technical support in the $56 price area. If the shares can firm up, we see overhead resistance around the $64-$67 price levels.
Stryker Corporation(SYK)is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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