Stryker's Earnings Not Bad, Attractive Share Price

After the bell, Stryker (SYK) reported Q4 EPS of 74 cents which is in line with estimates. Sales rose 3.6% to $1.72 billion. The company said that EPS for 2009 will range between $3.12 and $3.22. The company earned $2.83 for 2008 so that’s growth of 10% to 13%...not bad for a depression. Last month, the company increased its dividend by 21%.

Here's the earnings call transcript from Seeking Alpha. Also, here's the recent EPS trend:

2002: $0.88
2003: $1.12
2004: $1.43
2005: $1.75
2006: $2.02
2007: $2.40
2008: $2.83
2009: $3.12 to $3.22 [est]

Six months ago, I wrote: “I like Stryker a lot but I wouldn’t mind seeing it cheaper.” Well, the stock is 38% cheaper.

Since Stryker's IPO, the stock is up 49,160%. Berkshire Hathaway (BRK.A) is up “only” 45,222%.

Disclosure: Author holds a position in SYK.

Comments

[davidma11:]

SYK great stock.. long term demographic play. Insiders own like 25% or so of this company.. no debt.. real growth. I wish I owned more.

Jan 28 09:47 AM

[andyn1:]

Hang on... SYK is heavy into orthopedics and in times of financial stress, elective surgeries are NOT the first thing on people's minds.
Moreover, with all the job losses, there is reduced health insurance coverage.

Hence, I think SYK will languish at these levels (around $40) for about 1-2 years before resuming a uptrend.

Moreover, they pride themselves with a EPS growth of 20%... so 10% is not much encouraging. I would re-visit after the economy has stabilized.

Jan 28 10:30 AM

[Robinmdt:]

I've owned Stryker for years, and my mother before me. Anyway, even with a slowdown in the economy it still pays regular dividends, is a solid company, and now it's quite affordable. With a son in the Army, god forbid anything happening, one could also examine the role their orthopedics can play in the WTUs that exist for veterans.

Jan 28 10:51 AM

[jointsrme:]

Look at it another way. During times of financial stress(lost job) having your elective surgery may be the BEST time. You won`t have to take time off from your job. Get it out of the way and be prepared when the job mkt returns.

Jan 28 10:59 AM

[Dan Jacome:]

Why haven't they gotten bought out yet?

Jan 28 11:12 PM

[Paul Price:]

seekingalpha.com/artic...

Jan 30 06:15 PM

[User 378526:]

Will Stryker pass through the DOJ to the OIG or get caught for the actions that they have been doing for the last 2yrs? They have not been following there NPA and should pay for their actions. This is a company that could be bought when that happens because they will be at a cheap price.

Mar 18 10:42 AM