Stryker (NYSE:SYK) released strong numbers today on its predicted earnings for the year and quarter ending Dec. 31, 2010, sending its stock price up more than 3 percent in after-hours trading.
The Kalamazoo, Mich.-based company expects earnings of $3.17 to $3.19 per diluted share, on sales of $7.32 billion, for the just-ended year. That compares with earnings of $2.77 per diluted share, on sales of $6.72 billion, for 2009 — growth of 8.9 percent. For the fourth quarter, Stryker reported sales of $2.0 billion during the fourth quarter. That compares with sales of $1.83 billion during Q4 2009, an 8.8 percent increase.
Stryker made a series of acquisitions this year — including Sonopet Ultrasonic Aspirator, Gaymar Industries, Porex Surgical and, most notably, the neurovascular division of Boston Scientific Corp. (NYSE:BSX) — and entered into a deal to offload its troublesome OP-1 product family. The company will record a charge of approximately $125 million to reflect the anticipated loss on that sale.
“We took a number of important steps to reshape our company and enhance our competitive position by executing on several strategic acquisitions that are strengthening our core product offerings, while also allowing us to further diversify our sales footprint in some of the highest-growth segments in medical technology. And with the sale of the OP-1 product family for use in orthopedic bone applications, we re-focused our biologic R&D activities," CEO Stephen MacMillan said in prepared remarks.
The company intends to release its final earnings results for Q4 and 2010 on Jan. 25.
SYK shares were up 3.2 percent to $56.44 in after-hours activity.