Stryker Corporation SYK is scheduled to release second-quarter 2020 results on Jul 30, after the closing bell. In the last reported quarter, the company delivered earnings surprise of 8.9%. Further, it beat estimates in each of the trailing four quarters, the average surprise being 3.2%.<\/p>\n
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 62 cents, indicating a decline of 68.7% from the year-ago quarter.<\/p>\n
The same for revenues stands at $2.63 billion, suggesting a fall of 28.1% from the prior-year quarter.<\/p>\n
Strykers MedSurg segment comprises surgical instruments plus endoscopic and emergency medical equipment. It has three subsegments Endoscopy, Instruments and Medical. Unlike first-quarter 2020, which had witnessed partial impact of the COVID-19 pandemic, the second quarter bore the brunt of it. This resulted in the deferral of elective and non-critical procedures.<\/p>\n
Consequently, impact of the pandemic is likely to have weighed on the aforementioned subsegments, which in turn might get reflected on MedSurg units second-quarter performance. In fact, the Zacks Consensus Estimate for the segments second-quarter revenues stands at $1.36 billion, suggesting a decline of 15.8% from the year-ago reported figure.<\/p>\n
Stryker Corporation price-eps-surprise | Stryker Corporation Quote<\/p>\n
Weak performing Knee and Hips sub segment is likely to have weighed on the companys Orthopaedic segment in the second quarter. In fact, the consensus mark for the segments second-quarter revenues stands at $703 million, indicating a plunge of 44.8% prior-year quarter.<\/p>\n
With respect to Neurotechnology & Spine segment, weak performance by the NeuroTech and Interventional Spine businesses might have impacted the companys second-quarter performance. For the upcoming quarterly announcement, the Zacks Consensus Estimate for the segments sales stands at $564 million, suggesting a decline of 25.8% from the year-ago quarter.<\/p>\n
Nonetheless, sustained strong demand for Mako TKA (Total Knee Arthoplasty) platform or cementless knee and other 3D printed products is anticipated to get reflected in the segments second-quarter performance.<\/p>\n
During fourth-quarter 2019, the company acquired Mobius Imaging a leader in point-of-care imaging technology and its sister company Cardan Robotics in an all-cash transaction for $370 million upfront and up to $130 million of contingent payments related to development and commercial milestones. This transaction is likely to have aided Stryker Spine foray into the intra-operative Imaging segment apart from aligning with the companys implant and navigation offering. We expect this development to have positively impacted the companys second-quarter performance.<\/p>\n
However, unfavorable pricing may have affected Strykers second-quarter performance. Moreover, high debt might have put pressure on the margins.<\/p>\n
Story continues<\/p>\n
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.<\/p>\n
Earnings ESP: Stryker has an Earnings ESP of -12.58%. You can uncover the best stocks to buy or sell before theyre reported with our Earnings ESP Filter.<\/p>\n
Zacks Rank: Stryker carries a Zacks Rank #3.<\/p>\n
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.<\/p>\n
Integra LifeSciences Holdings Corporation IART has an Earnings ESP of +20.69% and a Zacks Rank of 2. You can see the complete list of todays Zacks #1 Rank stocks here.<\/p>\n
Exact Sciences Corporation EXAS has an Earnings ESP of +6.69% and a Zacks Rank of 2.<\/p>\n
Hologic, Inc. HOLX has an Earnings ESP of +14.56% and a Zacks Rank of 3.<\/p>\n
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?<\/p>\n
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportStryker Corporation (SYK) : Free Stock Analysis ReportHologic, Inc. (HOLX) : Free Stock Analysis ReportIntegra LifeSciences Holdings Corporation (IART) : Free Stock Analysis ReportExact Sciences Corporation (EXAS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.<\/p>\n
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Stryker (SYK) to Report Q2 Earnings: What's in the Cards? - Yahoo Finance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Stryker Corporation SYK is scheduled to release second-quarter 2020 results on Jul 30, after the closing bell. In the last reported quarter, the company delivered earnings surprise of 8.9%. Further, it beat estimates in each of the trailing four quarters, the average surprise being 3.2% Continue reading