Stryker Offers Good Core Growth, But Not As Much Value
Stephen Simpson, CFA
Stephen Simpson, CFA
Oct. 16, 2014, 4:35 PM
- Stryker (NYSE:SYK): Q3 EPS of $1.15 beats by $0.01.
- Revenue of $2.39B (+11.2% Y/Y) beats by $70M.
- Shares +.32%.
Oct. 16, 2014, 4:15 PM
- Stryker (SYK -0.4%) Q3 results ($M): Total Revenues: 2,389 (+11.1%); Gross Profit: 1,567 (+6.7%); Operating Expenses: 1,063 (-16.4%); Operating Income: 450 (+300.0%); Net Income: 57 (-44.7%); EPS: 0.16 (-40.7%); Quick Assets: 4,677 (+17.5%); CF Ops: 535 (-14.0%).
- Revenue by geography: U.S.: 1,628 (+12.4%); International: 761 (+8.4%).
- Revenue by business: Reconstructive: 1,016 (+8.5%); MedSurg: 936 (+16.3%); Neurotech and Spine: 437 (+6.7%).
- 2014 Guidance: Organic sales growth: 5 - 6% (unch); non-GAAP EPS: at the low end of $4.75 - 4.80.
Oct. 16, 2014, 10:52 AM
Oct. 15, 2014, 5:35 PM
Sep. 23, 2014, 7:45 AM
- U.S. Treasury Secretary Jack Lew says that the Obama Administration is prepared to institute rules to stop tax inversion deals. If so, it will do so without a sliver of Republican support. Barclays analyst Michael Leuchten says, "Washington is playing for time. It makes them look good and it allows Congress to maybe get its act together and maybe do something on the legislative side."
- Mr. Lew's comments have spooked the market a bit. European companies already involved in deals or rumored to be targets are all under pressure due to the perception that some of the deals already announced may be at risk.
- The U.S. firm in the best position is Horizon Pharma (NASDAQ:HZNP). It completed its tax inversion transaction with Ireland-based Vidara Therapeutics last week.
- Related tickers: (MDT -0.4%)(COV -0.5%)(ABBV -0.6%)(SHPG -0.7%)(OTCQB:SHPGF -1.5%)(PFE -0.7%)(AZN -0.1%)(SNN +0.1%)(SYK -0.8%)
Jul. 21, 2014, 7:15 AM
- Bloomberg reports that, according to analysts, there are three ex-U.S. medical firms that should be high on the target acquisition list for tax inversion deals. Ireland-based Perrigo (NYSE:PRGO), Switzerland-based Actelion and U.K.-based Smith & Nephew Plc (NYSE:SNN) (OTCQB:SNNUF) are all attractive targets. Observers believe there will be more acquisitions consummated before Congress puts limits on the maneuvers.
- Stryker (NYSE:SYK) has been mentioned as a potential suitor for Smith& Nephew. Pfizer (NYSE:PFE) may make another run at AstraZeneca (NYSE:AZN) after the end of the cool-off period.
Jul. 17, 2014, 4:28 PM
- Stryker (SYK -0.7%) Q2 results: Net Sales: $2,363M (+6.8%); COGS: $808M (+10.7%); R&D Expense: $158M (+19.7%); SG&A Expense: $1,038M (+2.3%); Operating Income: $307M (+5.9%): Net Income: $215M (+0.9%); EPS: $0.56 (unch); Quick Assets: $4,745M (+19.2%); CF Ops: $366M (+2.8%).
- 2014 Guidance: Organic sales growth: 5.0 - 6.0%; adjusted diluted EPS: $4.75 - 4.80.
Jul. 17, 2014, 4:27 PM
- Stryker Corporation (NYSE:SYK): Q2 EPS of $1.08 in-line.
- Revenue of $2.36B (+6.8% Y/Y) beats by $10M.
Jul. 16, 2014, 5:35 PM
Jul. 7, 2014, 3:53 PM
- Mariel Therapeutics enters into a definitive agreement with Stryker (SYK -0.1%) to acquire its Bone Morphogenetic Protein-7 (BMP-7) assets for the potential treatment of osteoarthritis, chronic kidney disease and other organ fibrosis conditions, lupus and obesity. Under the terms of the agreement, Mariel secures the rights to over 450 issued and pending patents, Stryker's BMP-7-related clinical and research data and associated biologic materials. Stryker will have the right of first negotiation for commercial rights in osteoarthritis. Terms of the deal are not disclosed.
- Muriel plans to pursue a Phase 2b/3 clinical trial for osteoarthritis and a Phase 1 for chronic kidney disease and Alport's disease.
Jun. 30, 2014, 10:34 AM
Jun. 4, 2014, 2:25 PM
- Bloomberg reports Medtronic (MDT +3.8%) is mulling a buyout offer for knee/hip implant maker Smith & Nephew (SNN +8.6%). SNN and i-banks are said to be "aware of Medtronic's interest.".
- The news service cautions Medtronic's prep work is at an early stage, and that "no offer is imminent." Nonetheless, Medtronic is viewed as "a more serious bidder" for SNN than Stryker (SYK -0.1%), previously rumored to be weighing an offer.
- Sources state a deal would likely result in Medtronic using SNN's corporate shell to change its legal residence to the U.K., and thereby take advantage of lower tax rates. Medtronic, which has a large offshore cash balance, has previously said it's open to a tax-inversion deal.
- Shares of both companies have spiked higher following the report. SNN's market cap is currently at $17B.
May 28, 2014, 10:46 AM
May 28, 2014, 9:13 AM
Apr. 23, 2014, 4:43 PM
- Stryker Corporation (SYK): Q1 EPS of $1.06 misses by $0.03.
- Revenue of $2.31B (+5.5% Y/Y) misses by $20M.
Apr. 15, 2014, 6:25 PM
- Surgical device maker ConMed (CNMD) is exploring a sale of the company, Reuters reported earlier today, after activist investors late last year took issue with its performance and corporate governance.
- The company's advisers, BoA Merrill Lynch and Greenhill, reportedly have contacted orthopedic device makers in recent weeks to gauge interest.
- CNMD has an attractive orthopedics and sports medicine business that could appeal to companies such as Zimmer Holdings (ZMH), Johnson & Johnson (JNJ), Stryker (SYK), Covidien (COV) and Medtronic (MDT).
- CNMD shares gained 7.2%, rallying from a loss before the report late in the session.
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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