Stryker Beats Q2 Estimates, Narrows Guidance, But Shares Tumble 9.5% After Hours
SYK is trading near its 52-week low of $281 (12% above the low).
Summary
Stryker delivered a strong Q2 with adjusted EPS of $3.69, beating the $3.49 consensus, and revenue of $6.59B, slightly above estimates. Profit surged to $1.28B from $884M a year ago, reflecting recovery from the March cyberattack that hit Q1. Despite the beat, shares plunged 9.5% after hours to $315.00, signaling investor disappointment with the guidance. The company narrowed its full-year adjusted EPS outlook to $14.95-$15.10, raising the low end by just $0.05, and tightened organic sales growth to 8.3%-9.3% from 8%-9.5%. The modest guidance raise and the sharp sell-off suggest the market expected more, especially after the cyberattack recovery. The after-hours drop indicates traders are pricing in a reset of expectations for the second half.
At the time of this announcement, SYK was trading at $316.00 on NYSE in the Life Sciences sector, with a market capitalization of approximately $133.4B. The 52-week trading range was $281.00 to $403.22. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.