Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Shares in Stryker higher, after medical device company doubles earnings

Published 01/26/2016, 06:46 PM
Updated 01/26/2016, 06:50 PM
Stryker saw its revenues jump 7% on a constant currency basis in the fourth quarter
SYK
-

Investing.com -- Shares in Stryker Corporation (N:SYK) rose considerably in after-hours trading, after the Michigan-based medical device company more than doubled its earnings for its final quarter of fiscal year 2015.

During the company's fourth quarter, which ended in late-December, Stryker reported earnings of $522 million or 1.38 a share, up significantly from its net profits over the same period a year earlier when it earned $260 million or 0.67 a share. For the period Stryker's revenues surged by 3.7% to $2.72 billion, slightly topping analysts of $2.7 billion. On a constant currency basis, Stryker's net sales grew by 7%, as its revenues among its Orthopedic, MedSurg and Neurotechnology and Spine divisions all jumped by more than 5.5%.

The strong quarter helped cap a productive year for the manufacturer, whose implants are used in joint replacement and trauma surgeries. In 2015, Stryker's net sales grew by 2.8%, led by a 5% spike in revenues in the Neurotechnology and Spine segment. Styker's adjusted net earnings per diluted share also increased by 8.2% to 5.12.

"With 2015 organic sales growth of 6.1%, bolstered by a strong fourth quarter increase of 6.4%, our top line results came in above our initial guidance," Styker CEO Kevin Lobo said in a statement. "This performance reflects the strength of our diversified revenue model, a commitment to innovation and the competitive advantage of our sales and marketing organizations.

"Our full year adjusted diluted EPS also exceeded our initial expectation, underscoring our commitment to delivering sales growth at the high end of med tech and leveraged earnings gains."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Also on Tuesday, Stryker announced that CFO William Jellison will retire in April after completing a 36-year professional career. Jellison will be replaced by Glenn Boehnlein, who currently serves as the company's CFO for its MedSurg & Neurotechnology divisions.

Moving forward, Stryker projected a full-year forward guidance for earnings of 5.50 to 5.70 for 2016 in line with consensus estimates. The company also anticipates increasing sales by 5 to 6% for the year as a whole.

"With these results and the current momentum across our businesses, we feel well positioned heading into 2016," Lobo added.

Shares in Stryker gained 1.74 or 1.84% to 96.15 in after-hours trading.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.