Oct. 17, 2013, 4:54 PM
- Stryker's (SYK) Q3 sales rise 6.8% on a constant currency basis.
- Sales breakdown (constant currency): Reconstructive +9.2%; MedSurg +2.6%; Neurotechnology and Spine +10%.
- FY13 outlook: EPS of $4.20-4.26 on organic sales growth of 4.5-5.5%. Consensus is $4.23/share on sales of $8.99B. (PR)
- More: SYK revenue in line, profit falls short
- SYK -1.8% AH.
Oct. 17, 2013, 4:09 PM
Oct. 17, 2013, 12:10 AM
Oct. 16, 2013, 5:35 PM
Oct. 15, 2013, 2:44 PM
- On emerging markets: JNJ CFO Dominic Caruso says the company maintained "double-digit growth ... somewhere near 11%, 12% combined in the BRIC markets," for Q3. As for China, JNJ saw "an overall slower level of market growth" for the period.
- In response to JPMorgan analyst Mike Weinstein's question regarding growth in the consumer business: "The consumer business has had some challenges related to the overall economic slowdown [but] certain pockets of the business ... are doing extremely well," Caruso notes, adding that although JNJ "still [has a] little ways to go with some innovation ... the emerging markets consumer business continues to do well [as] those consumers begin to purchase more personal care products."
- On the SYK-MAKO deal: DePuy Synthes Chairman Michel Orsinger says "robotics, in its current stage ... has not yet been proven [to be] the best solution to address outcomes, efficiency and costs," and while "It has theoretical incremental improvement in surgical accuracy [it comes] with increased significant surgical time and capital cost."
- CC transcript
- Q3 earnings rundown
Oct. 14, 2013, 3:53 PM| 3 Comments
Oct. 2, 2013, 8:35 AM
- "For [us] the device tax is clearly a negative. It's 2.3% of sales, roughly $100M a year, which represents roughly 20% of our [research-and-development] budget," Stryker (SYK) CEO Kevin Lobo says, discussing the impact of the Affordable Care Act with WSJ. Lobo is advocating — along with some members of Congress and the trade group AdvaMed — for a repeal of the excise tax.
- Some say the tax emanates from the medical device industry's reluctance to make pledges to help pay for the new healthcare law: "You either come to the table early, or you end up part of the dinner," one insider told WSJ in the early days of Obamacare wrangling.
- On the positive side of things, Lobo says "there are many sensible elements of [the] legislation," and the CEO says his company's hospital bed and knee replacement businesses should benefit from the law.
- As for the 89% premium the company paid for Mako (MAKO), Lobo says "the potential is enormous and it can really provide significant differentiation."
Sep. 25, 2013, 4:11 PM
- Also getting a boost Wednesday from the Stryker-Mako (SYK, MAKO) deal was Hansen Medical (HNSN) which posted double-digit gains (+14%) for the session.
- Intuitive Surgical (ISRG) and Accuray (ARAY) finished the day higher by 1% and 1.9% respectively.
- Meanwhile, commentary continues to come in regarding the seemingly high price SYK paid in the deal. BMO's Joanne Wuensch says that despite the lofty premium, "it makes a lot of sense [as] SYK takes a step forward into robotic surgery and consolidates its orthopedic silo."
- Previous coverage here
Sep. 25, 2013, 10:36 AM
- Stryker (SYK -2.3%) "is paying 12.4x EV/sales [for MAKO] on our 2013 sales estimate which is relatively high," Wells Fargo's Larry Biegelsen notes, adding that "the 2 most recent ortho deals, MDT's acquisition of Kanghui and SYK's acquisition of Trauson went for 11.6x and 8.7x, on an EV/sales basis respectively."
- Nevertheless, Biegelsen thinks SYK is getting a "differentiated asset" — Wells has been bullish on MAKO since May. SYK is reiterated at Outperform.
- TheStreet's Antoine Gara notes that as of September 13, 22% of MAKO's float was sold short.
- More on the deal here
Sep. 25, 2013, 8:52 AM
Sep. 25, 2013, 8:14 AM
- Mako Surgical (MAKO) shareholders get welcome news, as Stryker (SYK) is set to acquire the medical device company for $30/share, an 86% premium to Tuesday's close.
- SYK CEO Kevin Lobo is particularly excited about what the deal means for the future of joint reconstruction: "Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience," he says.
Sep. 6, 2013, 1:33 PM
- Stryker (SYK +2.2%) gets a lift from an upgrade at Credit Suisse to Outperform on valuation.
- The firm says that turnaround efforts in Europe are beginning to return growth toward market rates.
- Additionally, there are multiple upside catalysts to drive estimates higher coming from the Affordable Care Act, including additional knee patients, and an uptick in bed sales related to greater focus on patient satisfaction.
Jul. 19, 2013, 3:08 PMShares of Stryker (SYK +0.3%) are fractionally higher in afternoon trading after starting the day in negative territory following Thursday's Q2 report which saw the company cut its full year EPS guidance to $4.20-4.26 from $4.25-4.40 (consensus is $4.29). Barron's highlights a Canaccord note in which analysts reiterate a Buy recommendation based on "above market" growth, market share gains in hip and trauma/extremities, and new leadership. Wunderlich downgraded the shares today to Hold but the firm's price target is still above current levels. (For more: CC transcript) | Comment!
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