Stryker (NYSE:SYK) swung to red ink during the fourth quarter despite posting a nearly 10% top-line gain, largely due to the impact of the tax reforms passed last year.
The Kalamazoo, Mich.-based medtech giant reported losses of -$249 million, or -66¢ per share, on sales of $3.47 billion for the three months ended Dec. 31, 2017. That compares with profits of $510 million, or $1.34 per share, for Q4 2016. Adjusted to exclude one-time items, earnings per share were $1.96, 2¢ ahead of the consensus on Wall Street, where analysts were looking for sales of $3.39 billion.
Full-year profits were down -38.1% to $1.02 billion, or $2.68 per share, on sales growth of 9.9% to $12.44 billion compared with 2016; adjusted EPS were a penny ahead of The Street, where the consensus sales outlooked called for $12.37 billion.
“As pre-announced, we delivered excellent organic sales growth of over 8% in the fourth quarter, capping off a strong year for Stryker,” chairman & CEO Kevin Lobo said in prepared remarks. “We expect our positive momentum to continue in 2018 with another year of strong organic sales growth and leveraged adjusted earnings gains.”
Stryker said it expects to log adjusted EPS of $1.57 to $1.62 during the first quarter and $7.07 to $7.17 for the full year, with 2018 organic sales growth of 6.0% to 6.5%.
