Stryker's Q2 Earnings Miss Street View On Forex & Inflation Pressure

Stryker Corp SYK posted Q2 adjusted EPS of $2.25, missing the consensus of $2.29.
Consolidated net sales of $4.49 billion increased 4.6% Y/Y (7.6% in constant currency), missing the consensus of $4.54 billion.
Organically, sales were up 6.1%, including 7.5% from the higher unit volume, partially offset by 1.4% from lower prices.
MedSurg and Neurotechnology segment clocked net sales of $2.5 billion, +8% Y/Y (+7.9% organic).
Orthopedics & Spine sales reached $1.9 billion, up 0.5% Y/Y (+3.9% organically).
The adjusted gross margin decreased to 63.3% from 66% posted a year ago. Adjusted operating margin declined from 25.9% to 23.7%.
Guidance: Stryker says if foreign currency exchange rates hold near current levels, FY22 sales will be adversely impacted by approximately 2% - 3%, and adjusted EPS by approximately $0.25 - $0.30.
The company expects FY22 organic net sales growth of 8% - 9% versus the previous range of 6% - 8%.
It forecasts adjusted EPS of $9.30 - $9.50, compared to the consensus of $9.63, compared to the earlier range of $9.60 - $10.00.
Price Action: SYK shares closed 0.81% higher at $206.00 during after-hours trading on Tuesday.