Stryker Corp. stock falls after company lowers outlook for 2022
Shares of Stryker Corp. fell more than 4% in the extended session Monday after the maker of surgical equipment and other medical devices reported third-quarter results above analyst expectations but lowered its profit outlook for the year, thanks to inflation and a stronger dollar. Striker earned $816 million, or $2.14 a share, in the quarter, compared with $495 million, or $1.14 a share, in the year-earlier period. Adjusted for one-time items, Stryker earned $2.12 a share. Sales rose to $4.48 billion, from $4.16 billion. Analysts polled by FactSet expected GAAP earnings of $1.77 a share on sales of $4.46 billion. "Worsening foreign currency and ongoing inflation, including premiums on spot buys for key components, pressured our adjusted earnings and will impact our full year results. We are taking additional actions to address these persistent issues," Chief Executive Kevin Lobo said in a statement. Stryker said it expects 2022 net sales to be "adversely impacted" by about 4%, and adjusted EPS down by about 35 cents to 40 cents in the year. It called for adjusted EPS between $9.15 a share and $9.25 a share for the year considering the "continued inflationary pressures" as well as a stronger dollar. In July, the company guided for adjusted EPS between $9.30 and $9.50 for the year. Shares of Stryker ended the regular trading day flat.
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