Stryker (NYSE:SYK) shares dropped slightly today on first-quarter results that came in ahead of the consensus forecast.
The Kalamazoo, Mich.-based orthopedic device company posted profits of $493 million, or $1.30 per share, on sales of $3.6 billion for the three months ended March 31, 2020, for a 19.7% bottom-line gain on sales growth of 2%.
Adjusted to exclude one-time items, earnings per share were $1.84, 15¢ ahead of Wall Street, where analysts were looking for sales of $3.4 billion.
According to a news release, COVID-19 significantly impacted Stryker’s consolidated net sales in a negative way, resulting in unit volume growth rates that were lower than expected across all segments.
On the company’s earnings call, Stryker VP of strategy & IR Katherine Owen noted that between 40% and 50% of its global revenue includes elective procedures that can be deferred. These kinds of procedures have practically come to a halt everywhere as attention is turned to the COVID-19 crisis.
During April alone, Stryker’s orthopedics and spine sales were down approximately 65%, while its medical-surgical and neurotechnology businesses posted 25% declines.
Stryker previously reported an expected organic sales growth for 2020 to be in the range of 6.5% to 7.5% and its full-year earnings per share to range between $9.00 and $9.20. However, in March, the company withdrew its guidance amid the uncertainties caused by the coronavirus pandemic.
SYK shares were down -1.4% at $183.92 per share in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down 1.3%.