Stryker Offers Good Core Growth, But Not As Much Value
Stephen Simpson, CFA
Stephen Simpson, CFA
Apr. 2, 2015, 1:23 PM
- Retrophin (RTRX +3.7%) rated Outperform with a $48 (98% upside) price target by Leerink Partners.
- OvaScience (OVAS +8.7%) rated Outperform with a $60 (82% upside) price target by Oppenheimer.
- OxiGENE (OXGN -0.7%) rated Buy with a $6 (314% upside) price target by H.C. Wainwright.
- Esperion Therapeutics (ESPR -4.5%) rated Buy with a $140 (40% upside) price target by UBS.
- Trevena (TRVN -2.3%) rated Outperform with a $15 (110% upside) price target by Wedbush.
- NewLink Genetics (NLNK -2.3%) downgraded to Hold with a $50 (4% downside risk) price target by Jefferies.
- Stryker (SYK +0.2%) downgraded to Underweight with a $92 (1% upside) price target by Barclays.
- Universal Health Services (UHS +2.7%) downgraded to Underperform with a $98 (16% downside risk) price target by Sterne Agee.
Mar. 3, 2015, 8:58 AM
Feb. 9, 2015, 5:37 PM
Feb. 9, 2015, 12:21 PM
- The following are healthcare companies whose after-tax margins have expanded the past three quarters and trade at least 500K shares per day:
- (ACOR -0.7%)(BCR -1.5%)(BIIB -0.2%)(CAH -1.2%)(CPHD +1.3%)(EVHC -1.6%)(ILMN +0.7%)(JAZZ -1.7%)(LCI +7.3%)(MNK -0.5%)(SHPG -2.9%)(SYK -0.2%)(TMO -0.7%)(UTHR +1.4%)(VRX).
- This is not a list of "Buy" recommendations, but rather a targeted list of firms that may be suitable for more in-depth research.
Jan. 28, 2015, 1:54 AM
- "We do plan to put our money to work," announced Stryker (NYSE:SYK) CEO Kevin Lobo on the company's Q4 earnings conference call. "Right now we are pursuing the acquisition deal flow, and we'll see what happens."
- The company was recently rumored to have been preparing a bid for Smith & Nephew, although he gave no hint that any sort of deal was imminent.
- Q4 net income fell 33% to $260M, hurt by costs for product recalls and a new regional headquarters in Europe.
- SYK -0.4% AH
Jan. 27, 2015, 4:54 PM
- Stryker (NYSE:SYK): Q4 EPS of $1.44 misses by $0.01.
- Revenue of $2.62B (+6.1% Y/Y) in-line.
Jan. 27, 2015, 4:23 PM
- Stryker (NYSE:SYK) Q4 results ($M): Revenues: 2,618 (+6.1%), U.S.: 1,818 (+11.1%), Intl: 800 (-3.8%); COGS: 892 (+4.7%); R&D Expense: 153 (+10.1%); SG&A Expense: 1,059 (+4.7%); Net Income: 260 (-32.6%); EPS: 0.67 (-33.7%); CF Ops: 675 (+0.4%); Quick Assets: 5,000 (+25.6%).
- Gross Profit: 1,726 (+6.8%); COGS: 34.1% (-1.3%); Gross Margin: 65.9% (+0.7%); Operating Earnings: 514 (+10.3%); Operating Earnings Yield: 19.6% (+4.0%); Net Earnings Yield: 9.9% (-36.5%).
- Sales by segment: Orthopedics: 1,110 (+1.7%), Knees: 363 (-2.2%), Hips: 331 (-2.9%), Trauma & Extremities: 335 (+9.1%); Medsurg: 1,054 (+12.1%), Instruments: 393 (+12.3%), Endoscopy: 390 (+10.8%), Medical: 218 (+16.0%); Neurotech & Spine: 454 (+3.9%), Neurotechnology: 262 (+9.2%), Spine: 192 (-2.5%).
- Q1 Guidance: Non-GAAP EPS: $1.05 - 1.10.
- 2015 Guidance: Organic sales growth: 4.5 - 6.0%; Non-GAAP EPS: $4.90 - 5.00.
Jan. 26, 2015, 5:35 PM
Jan. 13, 2015, 6:57 PM
- Stryker (NYSE:SYK) expects to report Q4 EPS of $1.43-$1.45, below a $1.46 consensus. Net sales growth rose 6.1% (8.6% at constant currency) to $2.6B, below a $2.63B consensus.
- Orthopaedics sales rose 1.7%, MedSurg 12.1%, and Neurotechnology & Spine 3.9%. Organic sales growth was 5.5%. U.S. sales +11.1% to $1.8B; international -3.8% to $800M (+3.8% in constant currency).
- The medical device maker also says it now expects forex to have a $0.20 impact on 2015 EPS, worse than prior guidance of $0.10-$0.12.
- SYK -1.3% AH. Full Q4 results arrive after the close on Jan. 27.
Jan. 5, 2015, 9:35 AM
Dec. 24, 2014, 1:19 PM
- Osiris Therapeutics (NASDAQ:OSIR) establishes a partnership with Stryker (NYSE:SYK) to develop and commercialize Osiris' BIO4 bone matrix tissue form. Under the terms of the collaboration agreement, Stryker has an exclusive worldwide license to BIO4 and is responsible for all commercialization activities. Osiris is responsible for the manufacturing and continued research and product improvement efforts. Both firms will collaborate on the design and conduct of future clinical trials.
- BIO4 is a bone allograft that contains both viable cells and growth factors.
- Specific financial terms of the partnership are undisclosed.
Dec. 23, 2014, 2:23 PM
Dec. 8, 2014, 5:53 PM
- Former OtisMed Corp. (NYSE:SYK) CEO Charlie Chi admitted to intentionally distributing knee replacement surgery cutting guides after the company's application for marketing clearance had been rejected by the FDA. Mr. Chi and OtisMed entered their guilty pleas in Newark federal court.
- To settle the criminal charges, OtisMed was fined $34.4M plus $5.16M in criminal forfeiture. In a separate civil settlement, the company agreed to pay $40M plus interest.
- The cutting guides were used by surgeons during total knee arthroplasty or knee replacement surgery. OtisMed marketing the guide as a tool to help surgeons in making accurate bone cuts specific to the patient's anatomy based on magnetic resonance imaging performed prior to surgery. None of the claims regarding the OtisKnee device were evaluated by the FDA before the company included them in advertisements and promotional material.
- On each of three counts, Mr. Chi faces a maximum penalty of one year in prison and a $100K fine, or twice the gain or loss from the offense.
- Previously: Stryker settles with DOJ on OtisKnee promotion (Dec. 8, 2014)
Dec. 8, 2014, 3:08 PM
- Stryker Corp. (SYK) enters into a settlement with the U.S. Department of Justice in connection with the DOJ's civil and criminal investigations into the sales and marketing of the OtisKnee device prior to Stryker's acquisition of OtisMed in November 2009. The companies have agreed to pay the government $79,560,400 plus interest.
- The DOJ acknowledged that OtisMed's criminal conduct occurred prior to Stryker's transaction and without Styker's knowledge or acquiescence.
- The DOJ's allegations pertained to the promotion of a medical device that was not approved by the FDA.
Nov. 24, 2014, 5:19 PM
- Stryker (NYSE:SYK) is considering making a bid for medical device manufacturer Smith & Nephew (NYSE:SNN) as a standstill period that prevents it from making an offer nears its end, according to reports out earlier.
- SYK is examining structuring the deal as a tax inversion, allowing it to move its legal address to the lower-tax U.K., but SYK is said to see strong strategic reasons to pursue a combination aside from tax advantages, and an inversion would not be essential to make the deal work.
- J.P. Morgan analysts think an acquisition could be at least 7%-8% accretive to SYK's 2016 EPS, rising to 11% in 2017 and 13% in 2018, assuming a 30%-35% premium relative to the unaffected price and that the acquisition is not an inversion; however, the firm thinks SNN is not looking to sell, and a combination would not gain easy U.S. or EU anti-trust approval.
- SNN gained 4.3% and SYK rose 1.4% in today's trading.
Nov. 4, 2014, 4:10 AM
- Stryker (NYSE:SYK) has settled a lawsuit over thousands of hip implants it recalled in 2012 after patients complained of adverse reactions, including pain and swelling.
- Stryker will pay a base amount of $300K per case to patients who had the devices surgically removed, resulting in more than $1B in costs to resolve the 4,000 suits.
- The orthopedics company does not expect the settlement to hurt its profit.
Stryker Corp. engages in the provision of medical technology products and services. It operates through the following segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The Orthopaedics segment provides reconstructive and trauma implant systems. The Medsurg segment deals with... More
Industry: Medical Instruments & Supplies
Country: United States
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