Stryker Corporation SYK is scheduled to release third-quarter 2024 results on Oct. 29, after market close. In the last reported quarter, the company delivered an earnings surprise of 6.38%.
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Q3 Estimates
The Zacks Consensus Estimate for earnings is pegged at $2.78 per share, indicating an increase of 13% year over year.
The consensus mark for revenues is pinned at $5.37 billion, implying growth of 9.4% from the prior-year reported figure.
Factors to Note
Stryker's MedSurg and Neurotechnology segment witnessed substantial sales growth on the back of the robust performance of its subsegments in the past two quarters. Strong performances in the United States, Canada, Australia, Europe, Japan and most emerging markets also boosted revenues. This trend is likely to have continued in the third quarter.
The company witnessed a strong performance in the U.S. market, notably in Instruments, Medical, Endoscopy, Trauma and Extremities and Mako. The trend is likely to have continued in the third quarter. Strong International sales also buoyed optimism. SYK expects the momentum in the international market to accelerate in the rest of 2024.
Stryker is also poised for significant growth with several launches in the past few months. The recently launched LIFEPAK 35 defibrillator and monitor, introduced at the end of the second quarter, generates substantial market excitement and promises a multiyear benefit to Stryker's medical division. SYK launched Pangea Plating System in August, and Osteotomy Truss System (“OTS”) and the Ankle Truss System (“ATS”) in September, which should have brought additional sales during the to-be-reported quarter. The Panges system is indicated for the internal fixation and stabilization of bone fractures, osteotomies and arthrodesis in normal and osteopenic bone. The ATS and OTS systems are likely to have boosted SYK’s Foot & Ankle portfolio with enhanced surgical precision and improved patient outcome.
Apart from the launches, SYK is also strengthening its product portfolio with acquisitions. The company completed five acquisitions in the third quarter, including Artelon in July and MOLLI Surgical in August. While Artelon adds soft tissue fixation products for foot and ankle and sports medicine procedures, MOLLI’s portfolio is likely to boost Stryker’s commitment to advancing surgical solutions in breast cancer care. These two acquisitions are likely to have been accretive to the quarterly results.
During September, SYK completed acquisitions of Vertos Medical, NICO Corporation and care.ai, which will add a minimally invasive solution for treating chronic lower back pain, a minimally invasive surgery for tumor and intracerebral hemorrhage (ICH) procedures, and artificial intelligence (AI)-assisted virtual care workflows, smart room technology and ambient intelligence solutions, respectively. . On its third-quarterearnings call the company will likely provide updates related to the integration of these recently acquired businesses and their future impact on its performance.
The Zacks Consensus Estimate for the MedSurg and Neurotechnology, and the Orthopaedics & Spine segments’ sales is pegged at $3.13 billion and $2.24 billion, respectively. U.S. and international sales are estimated to be $3.97 billion and $1.39 billion, respectively.
Stryker Corporation Price and EPS Surprise
Stryker Corporation price-eps-surprise | Stryker Corporation Quote
The company’s prospects in 2024 seem promising on the back of ongoing procedural recovery, a strong order book for capital equipment and an improvement in price, along with a strong pipeline of innovation. However, the ongoing pressure in China due to volume-based procurement policy is likely to have partially offset international growth.
Stryker is working toward alleviating the ongoing inflationary pressure. It continued to recognize improved pricing and reduced cost pressure in the past couple of quarters. This is likely to have benefited gross margin during the third quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Stryker this time around. 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 below.
Earnings ESP: Earnings ESP, which represents the difference between the Maost Accurate Estimate and the Zacks Consensus Estimate is 0.00% for SYK. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3 at present.
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 reporting cycle.
Masimo MASI has an Earnings ESP of +0.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to release third-quarter 2024 results on Nov. 5. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.63%. The Zacks Consensus Estimate for EPS is expected to improve 33.3% from the year-ago reported figure.
ACADIA Pharmaceuticals ACAD has an Earnings ESP of +38.39% and a Zacks Rank #3 at present. The company is expected to release third-quarter 2024 results on Nov. 6.
ACAD’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 42.37%. The Zacks Consensus Estimate for EPS is expected to surge 127.5% from the year-ago figure.
Brainsway BWAY has an Earnings ESP of +100.00% and a Zacks Rank #2 at present. The company is expected to rlelease third-quarter 2024 results on Nov. 20.
BWAY’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 139.68%. The Zacks Consensus Estimate for EPS is expected to increase 200% from the year-earlier reported figure.
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