Stryker Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Stryker (NYSE:SYK) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. Stryker is a medical technology firm that produces a range of products in medical implants, surgical technologies and emergency medical equipment.

Stryker Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.13 per share, a rise of 10.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.14. Between one and three months ago, the average estimate moved down. It has risen from $1.12 during the last month. For the year, analysts are projecting profit of $4.06 per share, a rise of 9.1% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the third quarter, it reported net income of 97 cents per share versus a mean estimate of 98 cents. Two quarters ago, it reported profit of 98 cents per share.

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Stock Price Performance: Between November 16, 2012 and January 16, 2013, the stock price had risen $7.33 (14.1%), from $52.10 to $59.43. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 1, 2012, when shares rose for seven straight days, increasing 4.1% (+$2.17) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 5.8% (-$3.11) over that span.

A Look Back: In the third quarter, profit rose 8% to $353 million (92 cents a share) from $327 million (84 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 1% to $2.05 billion from $2.03 billion.

Here’s how Stryker traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

SYK

Wall St. Revenue Expectations: On average, analysts predict $2.28 billion in revenue this quarter, a rise of 2.7% from the year-ago quarter. Analysts are forecasting total revenue of $8.6 billion for the year, a rise of 3.5% from last year’s revenue of $8.31 billion.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 3% in the second quarter before climbing again in the third quarter.

Analyst Ratings: With 13 analysts rating the stock as a buy, none rating it as a sell and 13 rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.85 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 4.83 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 6.1% to $7.64 billion while liabilities rose by 5.8% to $1.58 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)