Orthopedic devices major, Stryker Corp. (SYK – Analyst Report) has pre-announced its fourth-quarter and full year 2012 results and provided its outlook for 2013. The company will report its financial results on Jan 23, after market closes.
Sales Growth Exceeds Guidance
According to the Michigan-based company, revenues for the fourth quarter increased 5.5% (6.1% on a constant currency basis and excluding acquisitions) year over year to $2.3 billion, essentially in line with the Zacks Consensus Estimate. For the full year, revenues grew 4.2% (4.2% in constant currency and excluding acquisitions) to $8.7 billion, also matching the Zacks Consensus Estimate. The constant currency 2012 revenue growth surpassed the company’s guidance of 2.5%–4.0%.
As per the preliminary results, revenues from Stryker’s core Reconstructive unit, offering replacement hip, knees and extremities products, rose 7.4% and 4.4% in constant currency in the fourth quarter and full year 2012, respectively. The fourth-quarter results show improvement from 1.1% constant currency revenue growth achieved in the previous quarter, which points to an improving reconstructive market fundamentals.The MedSurg business continues its healthy run with revenues growing 2.7% and 4.2% in constant currency in the fourth quarter and full year 2012, respectively. Neurotechnology and Spine revenues jumped 10.8% and 10.5% in constant currency in the fourth quarter and full year 2012, respectively.Stryker did not repurchase any shares in the fourth quarter, and ended 2012 with a total repurchase of 2.1 million shares worth $108 million.
Stryker has divulged its outlook for 2013. Revenues are expected to grow 3.0%–5.5% in constant currency. The company expects foreign currency (assuming current exchange rates) to unfavorably impact sales by roughly flat to 1% in the first quarter as well as full year 2013.
After accounting for the $100 million pre-tax annualized impact from the Med-Tech excise tax, Stryker expects adjusted earnings in the range of $4.25—$4.40 a share for 2013. The current Zacks Consensus Estimate of $4.32 for the year is within the provided guidance.Further, the company highlighted certain factors, which are expected to affect both the top as well as bottom-line growth in 2013. Fewer selling days in the first quarter compared with the year-ago quarter, price reductions in Japan in April 2012, the Neptune product recall and the income tax adjustments in 2012 are expected to impact results in 2013. Based on the above mentioned factors, adjusted earnings are expected to grow 23%, 24%, 24% and 29% in each of the four quarters of 2013, respectively
Source:Zacks Equity Research.Read the full report:http://www.zacks.com/stock/news/90398/stryker-provides-prelim-4q-results