Stryker Q3 sales, adjusted profit miss estimates despite higher unit volumes
Overview
U.S. medical technologies firm's Q3 net sales rose 7.7% to $6.52 bln but missed analyst expectations
Adjusted EPS for Q3 increased 10.3% but missed analyst expectations
Company repurchased $1 bln in stock and expanded buyback program by $3 bln
Outlook
Stryker sees FY2026 organic net sales growth of 6.5%-7.0%
Company expects FY2026 adj EPS of $14.80 to $14.90
Company expects modestly positive pricing and a slightly favorable foreign-exchange impact in FY2026
Result Drivers
UNIT VOLUME - Co said organic net sales growth in Q3 was primarily driven by increased unit volume
MEDSURG AND NEUROTECHNOLOGY - Segment sales rose 9.2%, mainly due to higher unit volume
IMPAIRMENT CHARGE - Q3 GAAP earnings fell as company recorded $293 mln in goodwill impairment charges
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 net sales | Miss | $6.50 bln | $6.62 bln (24 Analysts) |
Q3 Adjusted EPS | Miss | $3.52 | $3.55 (24 Analysts) |
Q3 EPS | $1.96 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for Stryker Corporation is $360.00, about 18.4% above its October 28 closing price of $304.00
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)