Earnings Preview: Stryker Corp.

		Stryker Corp. (SYK) is expected to report Q2 earnings Thursday, July 17 after the market close with a conference call scheduled July 17 for 4:30 pm ET. Guidance Analysts are looking for a profit of 73c on revenue of 1.68B. The consensus range is 71c to 73c for EPS, and revenue of $1.65Bto $1.70B, according to First Call. Positive drivers for this quarters earnings is revenue growth in the orthopedic implant business and surgical instruments. Possible negative influences include unfavorable effects of product recalls and pricing pressures. In mid-March, the company reaffirmed FY08 guidance of EPS $2.88. Analyst Views On May 9, Robert Baird said it was incrementally positive on the company's outlook. The firm continues to be confident in management's ability to overcome challenges in the near term while believing 20% earnings growth in FY08 and FY09 is attainable. Robert W Baird maintained its estimates with an $80 price target and an Outperform rating.

Comments

[andyn]

Zimmer is a better company with regard to their ortho technology. SYK is still struggling with their ceramic-on-ceramic tech which has issues relative to competitors. Also it is not a pure play on ortho since it has many other unrelated divisions such as beds, med comm etc.