The Kalamazoo, Mich.-based orthopedics giant posted profits of $260 million, or 67¢ per share, on sales of $2.62 billion for the 3 months ended Dec. 31, 2014, making for a 32.6% bottom-line plunge on sales growth of 6.1%.
Adjusted to exclude 1-time items, earnings per share were $1.44, just under analysts’ $1.45 forecast. Those items included some $$112 million worth of "Rejuvenate and recall matters" during the quarter, Stryker said, noting that the charges included costs for the recalls of its Rejuvenate and ABG II hip implants and Neptune waste management device.
"We delivered another strong quarter of sales growth and expect this to continue into 2015," chairman & CEO Kevin Lobo said in prepared remarks. "This growth, combined with ongoing operational improvements and a strong balance sheet, position us well for the future.”
Full-year profits were $515 million, or $1.34 per share, on sales of $9.68 billion, representing a 48.8% profit slide on 7.2% sales growth. Analysts were looking for adjusted EPS of $4.74, once again a penny more than Stryker delivered.
The company said it expects to post adjusted EPS of $1.05 to $1.10 for the 1st quarter and $4.90 to $5.10 for the full year, on 2015 sales growth of 4.5% to 6.0%.