Stryker narrowly beat second-quarter expectations and raised its sales outlook for the year. But Stryker stock slipped Wednesday on light earnings guidance.
For the year, the medical devices and equipment company now expects sales to increase 9% to 10% organically. That's up from its prior outlook for 8.5% to 9.5%. Analysts called for $22.31 billion in sales, which would rise 8.8% on a strict, as-reported basis.
But the midpoint of Stryker's new earnings guidance for $11.90 to $12.10 per share missed forecasts for $11.95, according to FactSet. Stryker raised its outlook by a nickel from the outlook it issued three months ago.
On today's stock market, Stryker stock fell 0.8% to 327.45.
Stryker Stock Rated Outperform
The second-quarter represented a beat, however. Sales climbed 8.5% to $5.42 billion. That narrowly beat expectations for $5.41 billion. Adjusted earnings came in at $2.81 a share, two pennies above forecasts, according to FactSet.
Sales from the medical surgical and neurotechnology division grew 9% on a strict, as-reported basis to $3.12 billion and were roughly in line with Stryker stock analysts' projections. Orthopedics and spine sales increased 7.9% to $2.31 billion, just ahead of forecasts, according to FactSet.
"We delivered another quarter of strong organic sales growth," Chief Executive Kevin Lobo said in a statement.
But Evercore ISI analyst Vijay Kumar noted that endoscopy and neurovascular sales came in light. He has an outperform rating on Stryker stock.
"The key question is whether the results and guide raise was enough given a sentiment turn in medtech," he said in a report.
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