- Stryker Corporation (NYSE:SYK) reported 1Q FY22 results that beat on the top and bottom line, reflecting a solid rebound in procedure volumes in March.
- SYK expects FY22 organic revenue growth in its 6-8% range. SYK called out the supply chain and inflation issues and expected EPS to come near the low-end of its $9.60-10.00 range.
- RBC Capital Market remains on the sidelines at this time and maintains a Sector Perform rating.
- SYK reported Q1 sales of $4.3 billion, +8.1% Y/Y (+9.2% organic), exceeding consensus estimates and RBC estimate of $4.2 billion.
- The beat was broad-based, with numbers coming in above expectations for all sub-segments except for other ortho and neurovascular.
- While the company did report a bounce back in surgical procedures and declining COVID-19 cases, supply chain challenges and electronic component shortages constrained sales growth.
- The impact was felt the most in SYK’s MedSurg business and Medical sub-segment.
- SYK is also seeing inflation in freight costs hitting margins. SYK expects that Q2 should look similar to Q1 in terms of supply challenges.
- While the company does not expect a full recovery in the global supply chain before 2023, it does expect to be able to procure enough to meet demand by year-end.
- Price Action: SYK shares are down 3.45% at $243.39 during the market session on the last check Friday.
KBR Bags General Maintenance Services Contract From SATORP
Saudi Aramco TOTAL Refining and Petrochemical Company (SATORP) has awarded KBR, Inc. (NYSE:KBR) a 7-year contract, with an option to…
