Earnings Preview: Stryker Corp.

Stryker Corporation (SYK) is expected to report Q3 earnings Thursday after the closing bell with a conference call scheduled October 16 for 4:30 pm ET.

Guidance

Analysts are looking for a profit of 67c on revenue of 1.66B. The consensus range is 65c to 68c for EPS, and revenue of $1.62Bto $1.70B, according to First Call. In its Q2 earnings release Stryker reported EPS 73c vs. consensus of 73c and revenue of $1.71B vs. consensus of $1.68B.

Positive drivers for this quarters earnings is revenue growth in the orthopedic implant business. Possible negative influences include unfavorable effects of product recalls and pricing pressures.

Analyst Views

On September 26, Leerink Swann noted that current consensus estimates have room to move lower as Stryker is unlikely to sustain 20% EPS growth. However the firm would continue to buy the stock given its above average EPS growth. Share remain Outperform rated.

On September 18, Rodman & Renshaw initiated Stryker with a Market Perform citing valuation.