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Founded in 1941, the Portage, Michigan-based Stryker Corporation (SYK) operates as a medical technology company that offers surgical equipment, and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, clinical communication, and artificial intelligence-assisted virtual care platform technology. With a market cap of $134.9 billion, the company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics.
The company is expected to report its Q1 earnings on Thursday, May 1, after the market closes. Ahead of the event, analysts expect SYK to report a profit of $2.73 per share, up 9.2% from a profit of $2.50 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in all of the past four quarters, which is impressive. In the previous quarter, it reported EPS of $4.01, which surpassed the consensus estimate by 3.6%, driven by solid growth across its segments.
For the current year, analysts expect SYK to report EPS of $13.46, up 10.4% from $12.19 in fiscal 2024. Looking ahead, analysts expect its earnings to surge 10.3% year-over-year to $14.84 per share in fiscal 2026.
Over the past year, SYK shares have surged 2.3%, underperforming the S&P 500 Index’s ($SPX) 6.6% gains but outperforming the Health Care Select Sector SPDR Fund’s (XLV) marginal fall over the same time frame.
SYK shares declined 1.2% following its Q4 earnings release on Jan. 28. The company reported a 10.7% increase in its net sales, which amounted to $6.4 billion. Additionally, the company also reported a 200 bps increase in its adjusted operating income margin, which resulted in 29.2%. For fiscal 2025, the company expects its organic net sales growth to be in the range of 8% to 9% and its EPS to be in between $13.45 to $13.70.
Moreover, analysts remain highly bullish about SYK stock’s future prospects, with a "Strong Buy" rating overall. Among 28 analysts covering the stock, 19 recommend a “Strong Buy,” two recommend a “Moderate Buy,” and seven suggest a “Hold.” SYK's mean price of $427.31 implies a premium of 23.2% from its prevailing price level.
