Stryker Corp. (SYK) expects fourth-quarter results slightly below Wall Street’s expectations, as negative effects from foreign-exchange rates were worse than previously expected.
For the latest quarter, the Kalamazoo, Mich., company said currency effects had a negative per-share impact of six cents–or two cents to three cents worse than previously expected. The quarter also had one less selling day than the year-earlier period, hurting sales by 1%, the company said in a news release.
For the quarter, Stryker expects per-share earnings of $1.43 to $1.45 on net sales of $2.6 billion. Analysts polled by Thomson Reuters recently expected per-share profit of $1.46 on revenue of $2.63 billion.
The company, like other device makers, was grappling with a slow-growing U.S. orthopedic market and seeking to expand its reach overseas, especially in emerging markets.
For the quarter, Stryker estimated that its domestic sales rose 11% to $1.8 billion, while sales abroad fell 3.8% to $ 800 million. However, excluding currency impacts, international sales improved by 3.8%.
Stryker now expects 2014 per-share earnings of $4.72 to $4.74, compared with its previous view for 2014 per-share profit at the low end of its earlier guidance of $4.75 to $4.80.
Shares fell 1.3% to $92.95 in recent after-hours trading.
Read more: http://www.nasdaq.com/article/stryker-outlook-hurt-by-currency-effects-20150113-01076#ixzz3OubA7GzZ
