Last10K.com

Stryker Corp (SYK) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Stryker Corp

CIK: 310764 Ticker: SYK
Exhibit 99.1

STRYKER REPORTS THIRD QUARTER 2018 OPERATING RESULTS
Reported net sales increased 7.9% to $3.2 billion
Organic net sales increased 7.9%
Reported operating income margin of 17.8%
Adjusted operating income margin(1) expanded 60 bps (40 bps excluding ASC 606(2)) to 24.9%
Reported EPS increased 36.0% to $1.55
Adjusted EPS(3) increased 11.2% to $1.69, at the high end of guidance range
Kalamazoo, Michigan - October 25, 2018 - Stryker (NYSE:SYK) reported operating results for the third quarter of 2018:
Third Quarter Highlights
 
2018 Net Sales Growth Overview
 
Reported
 
Excluding ASC 606 Adoption(2)
 
Foreign Currency Exchange
 
Constant Currency
 
Acquisitions
 
Organic
Orthopaedics
3.4
%
 
4.0
%
 
(1.0
)%
 
5.0
%
 
%
 
5.0
%
MedSurg
8.0

 
9.5

 
(0.9
)
 
10.4

 
1.6

 
8.8

Neurotechnology and Spine
16.7

 
17.4

 
(0.9
)
 
18.3

 
6.4

 
11.9

Total
7.9
%
 
8.8
%
 
(1.0
)%
 
9.8
%
 
1.9
%
 
7.9
%

"We had another impressive quarter, as our talented teams continue to deliver strong results and execute on acquisitions," said Kevin A. Lobo, Chairman and Chief Executive Officer. "The strength of our operating model and culture is evident in the consistency of our performance over time, and we remain optimistic about the future."

Sales Analysis (percentages exclude ASC 606(2) adoption impact)
Consolidated net sales of $3.2 billion increased 8.8% in the quarter and 9.8% in constant currency. Organic net sales increased 7.9% in the quarter including 9.5% from increased unit volume partially offset by 1.6% from lower prices.
Orthopaedics net sales of $1.2 billion increased 4.0% in the quarter and 5.0% in constant currency. Organic net sales increased 5.0% in the quarter including 7.6% from increased unit volume partially offset by 2.6% from lower prices.
MedSurg net sales of $1.4 billion increased 9.5% in the quarter and 10.4% in constant currency. Organic net sales increased 8.8% in the quarter including 9.5% from increased unit volume partially offset by 0.7% from lower prices.
Neurotechnology and Spine net sales of $0.6 billion increased 17.4% in the quarter and 18.3% in constant currency. Organic net sales increased 11.9% in the quarter including 13.5% from increased unit volume partially offset by 1.6% from lower prices.
Earnings Analysis
Reported net earnings of $590 million increased 35.9% in the quarter. Reported net earnings per diluted share of $1.55 increased 36.0% in the quarter. Reported net earnings include certain items, such as charges for acquisition and integration-related activities, the amortization of purchased intangible assets, restructuring-related and other charges, costs to comply with European Medical Devices Regulation, Rejuvenate and other recall-related matters, regulatory and legal matters and tax matters. The effect of each of these matters on reported net earnings and net earnings per diluted share appear in the reconciliation of GAAP to non-GAAP financial measures. Excluding the aforementioned items decreases gross profit margin from 66.5% to 66.3% in the quarter and increases operating income margin from 17.8% to 24.9%(1), including a 20 basis point favorable impact related to the adoption of the new revenue recognition standard(2). Excluding the impact of the items described above, adjusted net earnings(4) of $643 million increased 11.2% in the quarter. Adjusted net earnings per diluted share(3) of $1.69 increased 11.2% in the quarter.
2018 Outlook
Based on our year-to-date performance we now expect 2018 organic net sales growth, which excludes the impact related to adoption of the new revenue recognition standard(2), to be at the high end of the range of 7.0% to 7.5% and expect adjusted net earnings per diluted share(5) to be in the range of $7.25 to $7.30. In 2018 our calculation of organic net sales growth excludes the impact of adopting ASC 606(2), which includes primarily the reclassification of costs previously reported within selling expenses to a reduction of sales, which for 2017 was approximately $112 million ($28 million per quarter). For the fourth quarter we expect adjusted net earnings per diluted share(5) to be in the range of $2.13 to $2.18. If foreign currency exchange rates hold near current levels, we expect net sales in the fourth quarter will be negatively impacted by approximately 1.0% and full year will be positively impacted by approximately 0.5%, and net earnings per diluted share will be neutral in the fourth quarter and positively impacted by $0.05 in the full year.
(1) A reconciliation of operating income to adjusted operating income, a non-GAAP financial measure, and other important information accompanies this press release.
(2) Consistent with previous press releases and financial disclosures, we adopted Accounting Standards Update 2014-09, Revenue From Contracts with Customers, as well as related amendments (ASC 606), issued by the Financial Accounting Standards Board on a modified retrospective basis, effective January 1, 2018. The impact of the adoption of ASC 606 related primarily to the reclassification of certain costs previously presented as selling, general and administrative expenses to net sales.

1

The following information was filed by Stryker Corp (SYK) on Thursday, October 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Stryker Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Stryker Corp.

Continue

Assess how Stryker Corp's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Stryker Corp's Definitive Proxy Statement (Form DEF 14A) filed after their 2018 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Rating

Learn More
Bullish Bearish Neutral
Filter Sentiment:
All
Positive
Negative
Filter Category:
All
Revenue
Financial
M & A
Legal
Other
Filter Subcategory:
All
Product
Income
Geography
Dividend
Earnings
Expense
Shares
Other
Inside Stryker Corp's 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statements Of Cash Flows (Unaudited)
Consolidated Statements Of Comprehensive Income (Unaudited)
Consolidated Statements Of Earnings (Unaudited)
Accumulated Other Comprehensive (Loss) Income (Aoci)
Accumulated Other Comprehensive (Loss) Income (Aoci) (Details)
Accumulated Other Comprehensive (Loss) Income (Aoci) (Tables)
Acquisitions
Acquisitions (Allocation Of The Preliminary Purchase Price To The Acquired Net Assets (Details)
Acquisitions (Future Amortization Expense) (Details)
Acquisitions (Narrative) (Details)
Acquisitions (Tables)
Basis Of Presentation
Basis Of Presentation (Policies)
Basis Of Presentation Adoption Of New Accounting Standards (Details)
Contingencies And Commitments
Contingencies And Commitments (Narrative) (Details)
Debt And Credit Facilities
Debt And Credit Facilities (Details)
Debt And Credit Facilities (Tables)
Derivative Instruments
Derivative Instruments (Forward Currency Exchange Contracts) (Details)
Derivative Instruments (Income Statement Location) (Details)
Derivative Instruments (Narrative) (Details)
Derivative Instruments (Tables)
Fair Value Measurements
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs (Level 3)) (Details)
Fair Value Measurements (Narrative) (Details)
Fair Value Measurements (Tables)
Fair Value Measurements (Unrealized Losses And Fair Value Of Investments With Unrealized Losses) (Details)
Fair Value Measurements (Valuation Of Financial Instruments By Pricing Categories) (Details)
Income Taxes
Income Taxes (Details)
Revenue Recognition
Revenue Recognition (Tables)
Revenue Recognition - Disaggregated Sales Analysis (Details)
Revenue Recognition - Narrative (Details)
Segment Information
Segment Information (Sales And Other Financial Information By Business Segment) (Details)
Segment Information (Tables)
Ticker: SYK
CIK: 310764
Form Type: 10-Q Quarterly Report
Accession Number: 0000310764-18-000205
Submitted to the SEC: Fri Oct 26 2018 11:05:04 AM EST
Accepted by the SEC: Fri Oct 26 2018
Period: Sunday, September 30, 2018
Industry: Surgical And Medical Instruments And Apparatus

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/syk/0000310764-18-000205.htm