Stryker (NYSE:SYK) eked out a penny’s-width win over analysts’ expectations on Wall Street today, posting double-digit sales growth and absorbing a $70.5 million tax hit on its new European headquarters and the planned repatriation of some $2 billion of overseas cash.
Kalamazoo, Mich.-based Stryker reported profits of $57 million, or 16¢ per share, on sales of $2.39 billion for the 3 months ended Sept. 27. That’s a 44.7% profit decline, on sales growth of 11.1%.
But adjusted to exclude 1-time items, including the $70.5 million tax hit, earnings per share were $1.15, a penny ahead of expectations on The Street.
"The strength of our diversified model was evident again in the 3rd quarter as organic sales growth accelerated to 8%. These results put us on track to deliver on our full-year sales and earnings guidance," chairman & CEO Kevin Lobo said in prepared remarks. "We also launched our European headquarters, which will strengthen our business in the region and provide strong financial benefits, including a cash repatriation of approximately $2 billion planned in the second half of 2015.”
Stryker confirmed its outlook on full-year sales growth, saying it still expects to post top-line organic growth of 5.0% to 6.0%, but adjusted its adjusted EPS guidance to the low end of its prior guidance of $4.75 to $4.80.