Kalamazoo, Mich.-based Stryker posted profits of $103 million, or 27¢ per share, on sales of $2.15 billion for the quarter, representing a profit decline of 70.8% on sales growth of 4.8% compared with Q2 2012.
The recalls of its Rejuvenate and ABG II hip implants and the Neptune waste management system combined for a $313 million pre-tax charge that pushed earnings per share down to 64¢, according to a press release. Excluding that charge and other 1-time items, adjusted EPS were 98¢, a penny below analysts’ expectations.
"We are pleased with our strong third quarter sales growth of 6.8% in constant currency, and 6.1% excluding currency and acquisitions," president & CEO Kevin Lobo said in prepared remarks. "We believe these results not only represent gradual improvement in our key markets but also underscore our commitment to delivering above market growth. We are on track to meet our full year adjusted EPS guidance of $4.20 to $4.26."
Apart from confirming its earnings outlook for the balance of 2013, Stryker narrowed its sales growth forecast. Revenues are now expected to grow between 4.5% and 5.5%, compared with prior guidance of 4.0%-5.5%.
SYK shares closed up 1.4% at $72.55 apiece yesterday.