Stryker Reiterated at Neutral - Analyst Blog
17 Mayo 2013 - 7:50AM
Zacks
On May 16, we retained Stryker Corp. (SYK) at
Neutral, following its first-quarter results. Stryker’s reported
solid sales in the U.S. but international markets, especially
Europe, still remain weak.
Why the
Retention?
On Apr 24, Stryker posted
first-quarter 2013 adjusted earnings per share of $1.03, which were
2 cents above the Zacks Consensus Estimate. It transcended the
year-ago earnings by 4%. Revenues inched up 1.3% (2.6% in constant
currency) year over year to $2,190 million but missed the Zacks
Consensus Estimate of $2,207 million.
The company’s earnings have
managed to beat the Zacks Consensus Estimate in 2 out of the last 4
quarters, with an average surprise of 0.61%. It met the Zacks
Consensus Estimate in the second quarter of 2012 but missed it in
the subsequent third quarter. Following the earnings release, the
Zacks Consensus Estimate for 2013 and 2014 dropped 0.7% and 0.4% to
$4.30 and $4.67, respectively.
Stryker is one of the world’s
largest orthopedic companies and we believe that it should benefit
from new product launches, expansion into emerging markets, cost
control measures and increasing operating efficiency. In the first
quarter, it completed the acquisition of Trauson Holdings to gain
access to the large value-oriented orthopedic market in
China.
However, Stryker remains
challenged by the inconsistency in the international markets,
global capital-spending environment, pricing pressure along with
currency fluctuation and intense competition. Additionally, a
series of product recalls is adversely affecting some of its key
segments.
Other Stocks to
Consider
Stryker has a Zacks Rank #3
(Hold). While we remain on the sidelines regarding SYK, medical
stocks such as Conceptus (CPTS), Myriad
Genetics (MYGN) and AtriCure (ATRC)
warrant a look. While Conceptus and Myriad carry a Zacks Rank #1
(Strong Buy), ATRC carries a Zacks Rank #2 (Buy).
ATRICURE INC (ATRC): Free Stock Analysis Report
CONCEPTUS INC (CPTS): Free Stock Analysis Report
MYRIAD GENETICS (MYGN): Free Stock Analysis Report
STRYKER CORP (SYK): Free Stock Analysis Report
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