Originally, Kalamazoo, Mich.-based Stryker reported an expected organic sales growth for 2020 to be in the range of 6.5% to 7.5% and its full-year earnings per share to range between $9.00 and $9.20.
However, the unprecedented measures to slow the spread of coronavirus have led to a significant negative impact on Stryker’s operations and financial results, leading it to withdraw the guidance, according to its SEC Form 8-K. Among those measures was the Centers for Medicare and Medicaid Services’ recommendation that healthcare providers postpone elective procedures, including orthopedic surgery, to preserve personal protective equipment during the pandemic.
The orthopedic devices and hospital equipment company said the uncertain scope and duration of the pandemic, coupled with the uncertainty over economic recovery, mean it can’t estimate the impact COVID-19 will have on its operations and financial results.
Stryker intends to provide additional information in its next earnings release and conference call, which is scheduled for April 30. The guidance withdrawal comes on the back of a strong fourth quarter in which Stryker beat Wall Street projections for both sales and earnings.
Boston Scientific previously reported projected organic growth between 6.5% and 8.5% in 2020, with earnings set for a range between $1.74 and $1.79 per share. However, those numbers are now withdrawn after the impact that global authorities’ advisement of deferring elective medical procedures has had on the company’s business, along with other disruptions caused by the pandemic.
Much like Stryker, Marlborough, Mass.-based Boston Scientific said it intends to provide additional information during its earnings call on April 29. The company recently posted a mixed fourth quarter, topping Wall Street’s earnings projections but missing on revenue.