Stryker Corporation Set to Report Strong Q4 Earnings Amid Growth Expectations
Health Care Leader Anticipates Higher Profits as Fiscal 2024 Approaches
Portage, Michigan-based Stryker Corporation (SYK) is at the forefront of medical technology, providing products and services in MedSurg, Neurotechnology, Orthopedics, and Spine. Holding a market capitalization of $135.4 billion, Stryker is recognized as one of the globe’s leading medical technology firms.
The company will announce its fourth-quarter earnings after the market closes on Tuesday, Jan. 28. Analysts predict a non-GAAP profit of $3.87 per share for Stryker, an increase of 11.9% from last year’s $3.46 per share. Notably, Stryker has outperformed Wall Street’s earnings estimates for the last four quarters. In the most recent quarter, its adjusted earnings per share (EPS) climbed 16.7% year-over-year to $2.87, exceeding analysts’ expectations by 3.2%.
Looking ahead to the full fiscal 2024, analysts forecast an adjusted EPS of $12.06, representing a 13.8% increase from $10.60 in fiscal 2023. Projections for fiscal 2025 suggest continued growth, with expected earnings rising 12.1% year-over-year to $13.52 per share.
Over the past 52 weeks, SYK stock has risen 21.4%, outperforming the Health Care Select Sector SPDR Fund’s (XLV) modest gains. However, this growth is slightly less than the S&P 500 Index’s ($SPX) 24.2% increase during the same period.
Following the release of its impressive Q3 results on October 29, Stryker’s stock increased by 1.2%. The company’s net sales jumped 11.9% year-over-year to $5.5 billion, outperforming Wall Street’s predictions by 2.3%. Strong management of expenses contributed to a significant rise in profitability, with an adjusted operating margin of 24.7% and adjusted net earnings climbing 17.3% year-over-year to $1.1 billion.
Year-to-date, Stryker has experienced robust demand for its capital products and healthy procedural volumes, prompting the company to raise the lower end of its guidance for earnings and organic sales, which has positively impacted investor confidence.
The consensus among analysts regarding SYK stock is very favorable, with a “Strong Buy” rating overall. Of the 28 analysts monitoring the stock, 19 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and seven propose a “Hold” rating. The average price target is $414.35, which suggests a potential upside of 13.8% from current levels.
On the date of publication, Aditya Sarawgi did not hold any positions, either directly or indirectly, in the securities mentioned in this article. All information provided is for informational purposes. For more details, please review the Barchart Disclosure Policy here. More news from Barchart
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