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Stryker (SYK) to Report Q1 Earnings: What's in the Cards?

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Stryker Corporation SYK is scheduled to release first-quarter 2021 results on Apr 27, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 10.2%. Further, it beat estimates in each of the trailing four quarters, the average surprise being 18.8%.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.98, indicating an improvement of 7.6% from the year-ago quarter.
The same for revenues stands at $3.96 billion, suggesting growth of 10.4% from the prior-year quarter.

Factors to Note

Stryker’s MedSurg segment comprises surgical instruments plus endoscopic and emergency medical equipment. It has three subsegments — Endoscopy, Instruments and Medical. The company is likely to have witnessed revenue growth at this segment owing to rising demand for its safety related products. In fact, the Zacks Consensus Estimate for the segment’s first-quarter revenues stands at $1.68 billion, suggesting an increase of 3.5% from the year-ago reported figure.

With respect to Neurotechnology & Spine segment, growth in all the neurotech product lines might have favored the segment’s to-be-reported quarter’s performance. The Zacks Consensus Estimate for the segment’s first-quarter sales stands at $812 million, indicating an improvement of 9.1% from the prior-year quarter.

Stryker Corporation Price and EPS Surprise

Stryker Corporation Price and EPS Surprise
Stryker Corporation Price and EPS Surprise

Stryker Corporation price-eps-surprise | Stryker Corporation Quote

Strength in Knee, Hips and Trauma and Extremities sub segments is likely to have contributed to the company’s Orthopaedic segment in the first quarter. In fact, the consensus mark for the segment’s first-quarter revenues stands at $1.46 billion, suggesting growth of 19.7% prior-year quarter.

Moreover, the company continues to witness strong demand for Mako on the back of its unique features and healthy order book despite financial constraints stemming from the COVID-19 pandemic. This, in turn, positions the company well to sustain momentum in robot sales and recon share market gains.

Further, the company continues to focus on sustained expansion of Mako. This growth reflects demand for Stryker’s differentiated Mako robotic technology. Moreover, the company continues to observe that a growing percentage of both hip and knee replacement surgeries are being performed with a Mako robot, thereby raising optimism. Hence, strength in Mako may get reflected in the first-quarter results.

However, unfavorable pricing may have weighed on Stryker’s first-quarter performance.

What Our Quantitative Model Suggests

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 the case here as you will see.

Earnings ESP: Stryker has an Earnings ESP of +0.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Stryker carries a Zacks Rank #3.

Other Stocks Worth a Look

Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.

Thermo Fisher Scientific Inc. TMO has an Earnings ESP of +0.25% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

AmerisourceBergen Corporation ABC has an Earnings ESP of +0.50% and a Zacks Rank of 3.

Zimmer Biomet Holdings, Inc. ZBH has an Earnings ESP of +1.92% and a Zacks Rank of 3.

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Stryker Corporation (SYK) : Free Stock Analysis Report

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