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Stryker (SYK) to Report Q4 Earnings: What's in the Cards?

·3-min read

Stryker Corporation SYK is scheduled to release fourth-quarter 2021 results on Jan 27, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 3.5%.

Q4 Estimates

The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $2.72, indicating a decline of 3.2% from the year-ago quarter.

The same for revenues stands at $4.62 billion, suggesting growth of 8.3% from the prior-year quarter.

Factors to Note

Stryker’s MedSurg segment comprises surgical instruments plus endoscopic and emergency medical equipment. It has three subsegments — Endoscopy, Instruments and Medical. Improvement across all its subsegments may have contributed to the segment’s revenue growth in the quarter to be reported.

With respect to the Neurotechnology & Spine segment, growth in all four of the company’s neurotech businesses might have favored the segment’s to-be-reported quarter’s performance.

Growth in Mako, and strength in Knee, Hips and Trauma and Extremities sub-segments are likely to have aided the Orthopaedic segment’s fourth-quarter performance.

Stryker Corporation Price and EPS Surprise

Stryker Corporation Price and EPS Surprise
Stryker Corporation Price and EPS Surprise

Stryker Corporation price-eps-surprise | Stryker Corporation Quote

Stryker is committed to the sustained expansion of Mako. This growth reflects the demand for its differentiated Mako robotic technology. This momentum is likely to have continued in the fourth quarter of 2021, with advancement in the international markets. The company continues to observe that a growing percentage of both hip and knee replacement surgeries are being performed with a Mako robot, thereby raising optimism.

Hence, strength in Mako may get reflected in the fourth-quarter results.

However, it is important to mention here that COVID-19 resurgences might have weighed on the company’s implant-related businesses in the to-be-reported quarter owing to deferral of scheduled procedures.

Unfavorable pricing may have impacted Stryker’s fourth-quarter performance.

What Our Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see.

Earnings ESP: Stryker has an Earnings ESP of -0.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Stryker carries a Zacks Rank #4 (Sell).

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

AMN Healthcare Services, Inc. AMN has an Earnings ESP of +10.29% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.

Henry Schein, Inc. HSIC has an Earnings ESP of +2.62% and a Zacks Rank of 2.

Henry Schein’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.

Abiomed, Inc. ABMD has an Earnings ESP of +0.17% and a Zacks Rank of 3.

Abiomed’s long-term earnings growth rate is estimated at 20%. The company’s earnings yield of 1.4% compares favorably with the industry’s (3.3%).

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Stryker Corporation (SYK) : Free Stock Analysis Report

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