Stryker (NYSE: SYK) reported Q1 EPS of $1.93, $0.06 worse than the analyst estimate of $1.99. Revenue for the quarter came in at $3.95 billion versus the consensus estimate of $3.96 billion.

First Quarter Results

• Reported net sales increased 10.2% from 2020 and 12.4% from 2019 to $4.0 billion
• Organic net sales increased 1.8% from 2020 and 4.7% from 2019
• Reported operating income margin of 11.6%
• Adjusted operating income margin(1) contracted 50 bps to 23.5%
• Reported EPS decreased 39.2% to $0.79
• Adjusted EPS(1) increased 4.9% to $1.93

GUIDANCE:

Stryker sees FY2021 EPS of $9.05-$9.30, versus the consensus of $9.08.

We continue to monitor and evaluate the impact the global response to the COVID-19 pandemic has had, and will continue to have, on our operations and financial results. As we recover from the pandemic, we continue to expect 2021 organic net sales growth to be in the range of 8% to 10% from 2019, as this is a more normal baseline given the variability throughout 2020, and now expect adjusted net earnings per diluted share(2) to be in the range of $9.05 to $9.30, including the full year impact of the acquisition of Wright Medical. Consistent with the pricing environment experienced in both 2019 and 2020, we expect continued unfavorable price reductions of approximately 1% in 2021. If foreign currency exchange rates hold near current levels, we expect EPS will be positively impacted by $0.05 to $0.10 for the full year. This guidance assumes an ongoing recovery in our key geographies leading to more normalized elective procedure levels during the second quarter of 2021. As previously announced, we will not be providing quarterly guidance.

For earnings history and earnings-related data on Stryker (SYK) click here.