Shares of Stryker Corp. fall after company downgrades 2022 outlook

Stryker Corp stock. SYK,
fell more than 4% in Monday’s extended session after the maker of surgical equipment and other medical devices reported third-quarter results that beat analysts’ expectations, but lowered its profit outlook for the year, thanks to inflation and a stronger dollar. Striker earned $816 million, or $2.14 per share, in the quarter, compared with $495 million, or $1.14 per share, a year earlier. Adjusted for one-time items, Stryker earned $2.12 per share. Sales reached $4.48 billion, down from $4.16 billion. Analysts polled by FactSet had expected GAAP earnings of $1.77 per share on sales of $4.46 billion. “The worsening of foreign currencies and continued inflation, including premiums on cash purchases for key components, have put pressure on our adjusted earnings and will impact our full year results. We are taking further steps to resolve these persistent issues,” Chief Executive Kevin Lobo said in a statement. Stryker said it expects 2022 net sales to be “negatively impacted” by about 4% and adjusted EPS to decline about 35 cents to 40 cents over the course of the year. He called for adjusted EPS between $9.15 per share and $9.25 per share for the year given “continued inflationary pressures” as well as a stronger dollar. In July, the company guided adjusted EPS between $9.30 and $9.50 for the year. Stryker shares ended the regular trading day flat.

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