Stryker: Here’s What Investors Need to Know Before Earnings

Stryker (NYSE:SYK) will report earnings after markets close on Thursday, July 18th. Stryker Corporation develops, manufactures, and markets specialty surgical and medical products. The Company’s products include implants, biologics; surgical, neurologic, ear, nose & throat and interventional pain equipment; endoscopic, surgical navigation, communications and digital imaging systems; as well as patient handling and emergency medical equipment.

Here is your Cheat Sheet to Stryker Earnings:

Earnings Expectations: Analysts expect earnings of $1.03 per share on revenues of $2.19 billion. Currently, the company’s P/E ratio stands at 20.61.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.03 to a profit $1.01. For the current year, the average estimate is a profit of $4.29, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Stryker has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 6,718 6,723 7,320 8,307 8,657
Diluted EPS ($) 2.78 2.77 3.19 3.45 3.39

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 2,106.00 2,052.00 2,337.00 2,190.00
Diluted EPS ($) 0.85 0.92 0.71 0.79

Past Performance:
Stryker has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)