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Stryker’s (SYK) Comeback Quarter Looks Great, But At What Cost?
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Insider Monkey – Free Hedge Fund and Insider Trading Data
MedSurg and Neurotechnology sales rose 9.7% to $3.6 billion, with organic growth of 9.2%, almost all of it from more units sold rather than higher prices.
Orthopaedics sales climbed 9.1% to $3.0 billion, with organic growth of 8.6%, also driven almost entirely by volume.
Acquisitions and divestitures added essentially nothing to the total, so the 9.0% organic growth figure and the 9.4% reported figure landed nearly identical.
Stryker also narrowed its full-year guidance, now expecting organic net sales growth of 8.3% to 9.3% and adjusted EPS of $14.95 to $15.10.
Bear Case: How Much Of That Growth Is Really GrowthThe gap between Stryker’s reported and adjusted results is where the story gets murkier.