Here are five things to know from the Zacks analysis:
1. Stryker missed the Zacks Consensus Estimate for second quarter adjusted earnings by $0.01, although the company did report a 1 percent increase year-over-year. The company’s stock opened at $81.94 on July 22 and had a market cap of $31 billion, according to a Yahoo Finance report.
2. According to the financial report, the company expects 5 percent to 6 percent organic revenue growth this year, which is narrower than the range reported earlier — 4.5 percent to 6 percent. The company reported United States sales reaching $1.5 billion, but spine sales in the country were down 6.1 percent over the same period last year.
3. Despite the company’s financial report, Zacks is concerned about “strong competition from Johnson & Johnson,” as the medtech giant also reported a strong second quarter with orthopedic sales increasing 3.5 percent to $2.4 billion. The company’s subsidiary, DePuy Synthes, recently partnered with Tissue Regeneration Systems as well to develop three-dimensional printing technologies.
4. Medtronic’s recent acquisition of Covidien and Zimmer’s merger with Biomet also pose a threat to Stryker’s future as a major medtech company, according to the Zacks report. Stryker hasn’t been completely out of the acquisition game; the company has made a few moves recently — the most notable being the MAKO Surgical acquisition last year and the Small Bone Innovations acquisition earlier this month — but no blockbuster moves that will have the same impact as Medtronic-Covidien or Zimmer-Biomet.
5. Zacks reiterated a “neutral” rating for Stryker and set a target price of $86 on the company’s stock.
More Articles on Orthopedic Devices:
15 Spine Devices Receive FDA 510(k) Clearance in June
Titan Spine Receives Research Award From Scoliosis Research Society
Cayenne Medical Launches SureLock All-Suture Anchor System
At the Becker's 23rd Annual Spine, Orthopedic and Pain Management-Driven ASC + The Future of Spine Conference, taking place June 11-13 in Chicago, spine surgeons, orthopedic leaders and ASC executives will come together to explore minimally invasive techniques, ASC growth strategies and innovations shaping the future of outpatient spine care. Apply for complimentary registration now.
