) is set to report its fourth-quarter 2012 results after market
closes on Wednesday, Jan 23. Let's see how things are shaping up
prior to the announcement.
In the last quarter, the orthopedic devices major posted a
1.02% negative earnings surprise. Higher domestic sales and cost
containment measures were largely offset by weak international
and capital equipment sales.
Factors to Consider this Past Quarter
As per the preliminary fourth-quarter results released by the
company, it expects sales growth to exceed guidance on the back
of improving reconstructive market fundamentals. Further, the
company's well-diversified product portfolio along with
acquisitions are expected to drive growth.
Despite several short-term headwinds such as additional costs
associated with product recalls, restructuring expenses along
with the dilutive impact of acquisitions and other charges, the
company is slated to grow its bottom line. The Zacks Consensus
Estimate for the fourth quarter has moved up by a cent to $1.13
per share over the last 30 days.
Our proven model does not conclusively show that Stryker is
likely to beat earnings estimates this quarter. That is because a
stock needs to have both a positive Earnings ESP (Expected
Surprise Prediction) (Read:
Zacks Earnings ESP: A Better Method
) as well as a Zacks Rank of #1, 2 or 3 for this to happen. This
is not the case here as you will see below.
Zacks Earnings ESP
: The Most Accurate estimate stands at $1.13, while the
Zacks Consensus Estimate is also pegged at $1.13. This comes to a
difference of 0.00%.
Zacks Rank #3 (Hold).
Stryker's Zacks Rank #3 (Hold) lowers the predictive power of
ESP. The Zacks Rank #3 together with 0.00% earnings ESP makes
surprise prediction difficult.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right ingredients to post an earnings
beat this quarter:
), Earnings ESP of 72.73% and Zacks Rank #1 (Strong Buy)
Hill-Rom Holdings, Inc.
), Earnings ESP of 2.27% and Zacks Rank #2 (Buy)
Becton, Dickinson and Company
), Earnings ESP of 3.35% and Zacks Rank #2 (Buy)
BECTON DICKINSO (BDX): Free Stock Analysis
HILL-ROM HLDGS (HRC): Free Stock Analysis
NUVASIVE INC (NUVA): Free Stock Analysis
STRYKER CORP (SYK): Free Stock Analysis
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