Stryker Q2 Profit Rises - Update

(RTTNews) - Orthopedics devices maker Stryker Corp. (SYK), Thursday reported a slight increase in profit for the second quarter, after a seven percent growth in revenues were almost erased by lower gross margins and higher operating costs. Earnings for the quarter came in line with analysts' estimates, as did revenues.

Kalamazoo, Michigan-based Stryker's second-quarter profit rose to $215 million from $213 million last year. On a per-share basis, earnings were flat with last year at $0.56.

On an adjusted basis, earnings for the quarter rose to $415 million or $1.08 per share from $406 million to $1.07 per share last year. On average, 29 analysts polled by Thomson Reuters expected earnings of $1.08 per share for the quarter. Analysts' estimates typically exclude special items.

Stryker's sales for the quarter grew 6.8 percent to $2.36 billion from $2.21 billion last year. Analysts expected revenues of $2.35 billion for the quarter. Organic sales were up 5 percent.

Reconstructive products sales grew about 6.5 percent to $1.0 billion, while MedSurg sales increased 8.8 percent to $905 million. Neurotechnology and spine segment sales increased 3.8 percent to $430 million.

Gross margins for the quarter dropped to 65.8 percent from 67.0 percent last year.

Looking forward, the company expects full-year adjusted earnings of $4.75 per share to $4.80 per share and organic sales of 5 to 6 percent. Analysts currently estimate full-year earnings of $4.80 per share.

For the third quarter, the company expects adjusted earnings of $1.12 to $1.16 per share. Analysts currently estimate third-quarter earnings of $1.16 per share.

SYK closed Thursday's trading at $81.71, down $0.58 or 0.70%, on the NYSE.