Stock on Trader’s Radar: Stryker Corporation (NYSE:SYK)

Stryker Corporation (NYSE:SYK) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $1.24 per share on revenue of $2.5B. Analysts had been modeling earning per share of $1.2 with $2.47B in revenue.

Stryker Corporation (NYSE:SYK) reported operating results for the first quarter of 2016:

First Quarter Highlights

Reported net earnings per diluted share increased 84.5% to $1.07

Adjusted net earnings per diluted share increased 11.7% to $1.24

Sales Analysis

Consolidated net sales of $2.5 billion increased 4.9% in the quarter as reported and 6.1% in constant currency, as foreign currency exchange rates negatively impacted net sales by 1.3%. Acquisitions did not significantly impact net sales in the quarter.  Net sales in constant currency increased by 7.5% from increased unit volume partially offset by 1.4% due to lower prices.

Orthopaedics net sales of $1.1 billion increased 3.3% in the quarter as reported and 4.6% in constant currency, as foreign currency exchange rates negatively impacted net sales by 1.4%. Net sales in constant currency increased by 6.3% from increased unit volume partially offset by 1.7% due to lower prices.

MedSurg net sales of $958 million increased 3.4% in the quarter as reported and 4.6% in constant currency, as foreign currency exchange rates negatively impacted net sales by 1.2%. Acquisitions did not significantly impact net sales in the quarter. Net sales in constant currency increased by 5.0% from increased unit volume partially offset by 0.6% due to lower prices.

Neurotechnology and Spine net sales of $480 million increased 12.0% in the quarter as reported and 13.1% in constant currency, as foreign currency exchange rates negatively impacted net sales by 1.1%. Net sales in constant currency increased by 15.5% from increased unit volume partially offset by 2.4% due to lower prices.

Stryker Corporation earnings per share showed an increasing trend of 180.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 638%.Analysts project EPS growth over the next 5 years at 10.39%. It has EPS annual growth over the past 5 fiscal years of 3.5% when sales grew 6.3. It reported 4.9% sales growth, and 82.4% EPS growth in the last quarter.

The stock is trading at $111.16, up 28.71% from 52-week low of $86.68. The stock trades down -2.36% from its peak of $113.85 and 4.8% above the consensus price target of $116.5. Its volume clocked up at 2.79 million shares which is higher than the average volume of 1.39 million shares. Its market capitalization currently stands at $41.80B.