Rising costs hurt S&P 500 (NYSE:SPY) component Stryker Corporation (NYSE:SYK) in the second quarter as profit dropped from a year earlier. Stryker Corp. is a medical technology firm, which produces a range of products in medical implants, surgical technologies and emergency medical equipment. It is divided into two segments, which are Orthopaedic Implants and MedSurg Equipment.
Stryker Earnings Cheat Sheet for the Second Quarter
Results: Net income for Stryker Corporation fell to $309.1 million (79 cents per share) vs. $319 million (80 cents per share) a year earlier. This is a decline of 3.1% from the year earlier quarter.
Revenue: Rose 16.3% to $2.05 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: SYK reported adjusted net income of 90 cents per share. By that measure, the company fell in line with the mean estimate of 90 cents per share. Analysts were expecting revenue of $2.01 billion.
Quoting Management: “Our second quarter results validate the strength of our diverse sales footprint, enabling us to deliver on our commitments despite ongoing macro-economic challenges,” commented Stephen P. MacMillan, Chairman, President and Chief Executive Officer. “We are excited about our ability to leverage the breadth of our product offering through continued investments in R&Dcoupled with selective acquisitions, share repurchases and dividends in order to maximize shareholder value.”
Gross margin shrank 4.2 percentage points to 65.2%. The contraction appeared to be driven by increased costs, which rose 32.2% from the year earlier quarter while revenue rose 16.3%.
Revenue has risen the past four quarters. Revenue increased 12% to $2.02 billion in the first quarter. The figure rose 8.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 6.9% in the third quarter of the last fiscal year from the year-ago quarter.
The company has now seen net income fall in each of the last three quarters. In the first quarter, net income fell 4.4% from the year earlier, while the figure fell 3.6% in the fourth quarter of the last fiscal year.
The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the first quarter, it topped the mark by one cent, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.
Competitors to Watch: Zimmer Holdings, Inc. (NYSE:ZMH), Exactech, Inc. (NASDAQ:EXAC), Smith & Nephew plc (NYSE:SNN), Wright Medical Group, Inc. (NASDAQ:WMGI), Tornier N.V. (TRNX), CONMED Corporation (NASDAQ:CNMD), ArthroCare Corporation (NASDAQ:ARTC), Medtronic, Inc. (NYSE:MDT), NuVasive, Inc. (NASDAQ:NUVA), and Alphatec Holdings, Inc. (NASDAQ:ATEC).
(Source: Xignite Financials)