Stryker Q1 EPS $2.60 vs $2.98 estimate, revenue misses by $330M
SYK•Stryker reported first-quarter adjusted EPS of $2.60, missing estimates of $2.98 and generating $6.02 billion in revenue versus $6.35 billion forecast due to softer demand for implants used in complex procedures. The company maintained its full-year adjusted EPS outlook of $14.90 to $15.10 per share despite disruptions from a March cyberattack.
1. First-Quarter Earnings Miss Estimates
Stryker reported adjusted EPS of $2.60 for the quarter ended March 31, falling short of the $2.98 consensus, and posted total revenue of $6.02 billion versus $6.35 billion expectations. The shortfall reflected weaker orders for devices used in spinal, orthopedic and other complex procedures.
2. Segment Sales Breakdown
Sales in the medical surgery and neurotechnology segment rose 5% to $3.21 billion, below the $3.83 billion analysts anticipated, while the orthopedics segment delivered a 6.3% increase to $2.81 billion, outperforming the $2.51 billion forecast.
3. Cyberattack Disruptions
In March, an Iranian-linked hacking group launched a destructive cyberattack that limited access to Stryker’s internal systems and delayed certain surgeries, creating operational challenges and contributing to the revenue miss.
4. Outlook and Share Reaction
Despite the quarterly miss, Stryker reaffirmed its full-year adjusted EPS guidance of $14.90 to $15.10 per share. Shares declined 1.8% in extended trading following the results.
