Stryker (NYSE:SYK) shares ticked up today after the medical device company yesterday raised the low end of its earnings outlook and reported 4th-quarter preliminary results that met expectations on Wall Street.
Kalamazoo, Mich. based Stryker said it now expects to post adjusted earnings per share of $5.09 to $5.12, up from prior guidance of $5.07 to $5.12. The company said it plans to issue full-year guidance Jan. 26, reflecting its decision to reinvest most of the cash it would have paid to the medical device tax.
That 2.3% levy was suspended for 2 years beginning Jan. 1. Stryker said the medical device tax put a 13¢ hit on EPS last year.
“With 2015 organic sales growth of 6.1%, bolstered by a strong 4th-quarter increase of 6.4%, our top-line results came in at the high end of our expectations at the beginning of the year,” chairman & CEO Kevin Lobo said in prepared remarks. “This performance reflects the strength of our diversified revenue model, a commitment to innovation and the competitive advantage of our sales and marketing organizations. Our updated full-year guidance range of adjusted EPS also exceeds our initial expectations, underscoring our commitment to delivering sales growth at the high end of medtech and leveraged earnings gains. With these results and the current momentum across our businesses we are well positioned as we head into 2016.”
Stryker said net sales grew 3.7% to $2.7 billion during the 3 months ended Dec. 31, 2015, compared with the same period in 2014. Full-year sales grew 2.8% to $9.9 billion compared with 2014, the company said.
SYK shares gained 2.0% in pre-market trading, rising to $90.50 apiece, before opening at $89.97 today, up 1.4% over yesterday’s closing price.