Stryker (NYSE:SYK) shares trade over 4% lower in pre-open Tuesday after the surgical equipment maker reported its Q1 results and offered guidance.
Stryker reported EPS of $2.14 on revenue of $4.8 billion, topping the analyst estimate for earnings of $2.01 on revenue of $4.56B. Both business segments - MedSurg & Neurotechnology and Orthopaedics & Spine - generated better-than-expected sales for Q1.
Stryker sees FY EPS between $10.05 and $10.25, ahead of the Street at $10.06 and up from the prior $9.85-$10.15. The company still sees FY organic sales growth between 8-9%.
“If foreign exchange rates hold near their current levels, we anticipate full year sales and EPS will be modestly unfavorably impacted for the full year, being more negative in the first half of the year,” the company said in a press release.
Barclays analysts raised the target to $321 per share on Overweight-rated SYK shares.
“The magnitude of SYK’s Q1 beat made it hard for mgmt to do anything but temper expectations for the rest of the year. We remain bullish on SYK’s durable growth profile, but mgmt will likely need to deliver further upside and upward guidance revisions to drive the stock significantly higher in the near-term,” they said in a note.
Bernstein analysts said SYK delivered a “great quarter against high expectations.”
“We would be buyers” of SYK shares in light of pre-market weakness, the analysts told Bernstein’s clients.