Stryker (NYSE:SYK) said today it closed its buy of CareFusion‘s vertebral compression fracture portfolio from Becton Dickinson & Co. (NYSE:BDX) in an all-cash transaction and released a street-beating 1st quarter earnings report.
The purchased portfolio is comprised of minimally-invasive systems used in vertebroplasty and vertebral augmentation procedures, which BD purchased as part of CareFusion’s portfolio in March 2015.
“The acquisition of BD’s VCF portfolio is highly complementary to Stryker Instruments’ Interventional Spine business and is aligned with IVS’s strategy of expanding its VCF footprint. It also further strengthens Stryker’s brand in the Neurotechnology space,” medsurg and neutorechnology group prez Timothy Scannell said in a press release.
The Kalamazoo, Mich.-based company said it expects the transaction to be neutral to its 2016 adjusted net earnings per share and accretive after.
Stryker reported profits of $402 million, or $1.08 per share, on sales of $2.5 billion for the 3 months ended March 31, 2016. That amounts to a massive 79.5% bottom-line gain on sales growth of 4.9% compared with the same period in 2015.
Adjusted to exclude 1-time items, earnings per share were $1.24, 4¢ above the $1.20 that analysts on Wall Street were looking for. Revenue also topped the Street, which were looking for $2.47 billion.
“We are pleased by our first quarter performance and expect the momentum to continue. As a result, we have raised our full year guidance for both sales and adjusted net earnings,” CEO Kevin Lobo said in a press release.
The company adjusted its 2016 outlook, expecting sales growth in the range of 5.5% to 6.5%, up 0.5% from earlier guidance. Adjusted net earnings per diluted share for 2016 are expected to be $5.65 to $5.80, up from $5.57 to $5.77.
For the 2nd quarter, Stryker said it expects earnings per share to be between $1.33 and $1.38.