The Kalamazoo, Mich.-based company said it expects a total revenue of $3.2 billion for Q4, up 16.3% from the same time last year. Analysts were looking for sales of $3.15 billion.
“I am pleased with our performance in both the 4th quarter and the full year 2016,” chairman & CEO Kevin Lobo said in prepared remarks. “Fourth-quarter organic growth of 6.7% versus a strong prior year is impressive, and was balanced across orthopedics, medsurg and neurotechnology and spine. In addition, we executed well on acquisitions and delivered leveraged adjusted earnings gains. We enter 2017 with good momentum across our businesses and look forward to building on this success.”
Stryker met analysts’ expectations for its full-year revenue at $11.3 billion, up 13.9% from 2015.
SYK shares were trading at $125.16 apiece in early-morning activity, up 2.6%. The stock closed at $121.91 per share yesterday, up 2.4%.
The FDA said in December that it relabelled Stryker subsidiary Concentric Medicals’s Trevo mechanical thrombectomy devices as Class II. Concentric Medical submitted the reclassification request for its Trevo ProVe and XP ProVue retrievers in October 2015.
The federal watchdog reviewed the order, and on September 2 it issued an order to reclassify the device types as Class II, given the generic name of neurovascular mechanical thrombectomy devices for ischemic stroke treatment.
Earlier this month, a Barclays survey including 51 U.S. hip and knee surgeons led analyst Matthew Taylor to believe that investors’ expectations for Stryker’s Mako robot-assisted surgery platform may be mismatched with potential users of the system.
Taylor wrote in a note to investors that they believe “MAKO uptake will be modest”, after 22% of the doctors surveyed reported using the Mako system, with 26% reporting that they would use it again in the future.
“In our view, there is a mismatch between investor expectations for Mako (which are high) and the market reality (which is mixed). While our survey showed some signs of enthusiasm for robotics, doctors called this the most ‘over-hyped’ area,” he wrote