Stryker (SYK) Stock Slumps Despite Q2 Earnings, Revenue Beat

Stryker (SYK) stock is falling on Friday afternoon even though the company reported earnings and revenue that surpassed analysts’ estimates.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Stryker (SYK) - Get Report are sliding 5.27% to $116.10 on heavy trading volume early Friday afternoon even though the company reported better-than-expected results for the 2016 second quarter.

After yesterday's closing bell, the Portage, MI-based medical technology company posted adjusted earnings of $1.39 per share on revenue of $2.84 billion.

Analysts were projecting earnings of $1.37 per share on revenue of $2.79 billion.

For fiscal 2016, Stryker sees earnings per share between $5.70 and $5.80 vs. its prior view of $5.65 to $5.80. Analysts are modeling earnings of $5.76 per share for the full year.

Additionally, organic sales growth for the full year is expected to be in the range of 6% to 6.5%.

Brean Capital raised its price target to $125 from $121 and reiterated its "buy" rating on shares after the results, the Fly reports.

The firm said second quarter expectations were high for the company and the quarter was good. However, there may be some temporary weakness before the stock resumes its "melt-up," according to Brean Capital.

About 2.81 million of the company's shares changed hands so far today vs. its average volume of 1.45 million shares per day.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.

The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity.

The team believes its strengths outweigh the fact that the company shows weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

You can view the full analysis from the report here: SYK

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