Stryker Corporation SYK reported Q1 sales of $4.80 billion, up 11.8% Y/Y (+14% in constant currency), beating the consensus of $4.56 billion.
Adjusted EPS came in at $2.14, which increased 8.6% in the quarter, beating the consensus of $2.00.
Piper Sandler said the upside was broad-based as the company continues to capitalize on strong volume trends and new product introductions.
Management chose to run through the Q1 beat to guidance rather than increase the full-year outlook by more than that, along with some GM pressures.
The analyst says the momentum across the business is very strong, which should be buoyed by the supercycle, and profitability will improve later in the year as some cost pressures abate.
It reiterates an Overweight rating with a price target of $310.
Needham writes that Stryker saw broad-based strength across nearly all of its businesses driven by new product launches and strong procedure growth.
Noting that inflation, currency, and supply chain should improve throughout 2023, the analyst maintains a Hold rating.
Price Action: SYK shares are down 1.94% at $294.06 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.