On July 31, Stryker declined 7.77% overnight, trading at $321.01/share. The sell-off was triggered by the company's second-quarter earnings release after the close on July 30, where strong results were overshadowed by a minimal full-year guidance increase.
Stryker reported Q2 adjusted EPS of $3.69, beating the consensus estimate of $3.49 by 5.73% and representing a 17.89% year-over-year increase from $3.13. Net sales reached $6.589 billion versus the $6.579 billion estimate. Despite the significant Q2 outperformance, the company only narrowed its full-year adjusted EPS guidance to $14.95-$15.10 from the prior range of $14.90-$15.10, against the FactSet estimate of $14.97. The negligible upward revision raised concerns about growth sustainability in the second half.
Market sentiment was further weighed by lingering uncertainty from a Q1 cybersecurity incident that previously caused earnings to miss estimates, with Q1 adjusted EPS of $2.60 falling short of the $2.98 consensus. Investors remain cautious about operational stability heading into the back half of the year.
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