Stryker’s profits decreased 2.3% year-over-year in the fourth quarter, to $510 million, amid charges related to its recalled Rejuvenate or ABG II modular metal-on-metal neck hip stems, as well as expenses related to restructuring and acquisition costs.
Earnings per share were $1.34, down 2.9% year-over-year, the company reported Tuesday evening. Excluding the charges, Stryker’s profits would have been up 14.1% to $1.78 per share, which falls in line with the expectations of analysts polled on Yahoo Finance. Stryker’s stock was up slightly, to nearly $121.50 in early after-hours trading.
Sales were $3.2 billion for the quarter ended Dec. 31, 2016, up 16.2% from the same quarter a year ago.
Stryker in 2016 earned $1.65 billion off of $11.33 billion in sales in 2016, up from $1.44 billion in profits and $9.95 billion in sales in 2015. For 2017, Stryker officials expect organic sales to grow 5.5% to 6.5%, with earnings per share between $6.35 to $6.45, which is in line with analysts’ expectations.
“We enter 2017 with good momentum across our businesses and look forward to building on this success,” Stryker CEO Kevin Lobo said in a news release.
The earnings news came about a month after Stryker announced that its Howmedica Osteonics subsidiary had reached an agreement to compensate people who needed revision surgery to correct problems with the Rejuvenate or ABG II modular metal-on-metal neck hip stems.