Stryker's (SYK) Q3 miss and lower guidance were anticipated, but its comments about underperformance in the hip and knee end markets were more negative than expected, Truist Securities said in a Friday note.
The company reported Q3 adjusted earnings late Thursday of $3.52 per diluted share on revenue of $6.52 billion. Analysts polled by FactSet expected EPS of $3.55 on revenue of $6.62 billion.
Stryker attributed the underperformance in the end market for hip- and knee-replacement procedures to factors such as a softer market, increased hurdles for patients' surgery approvals, product gaps, and slower-than-expected adoption of new products, according to the note.
The firm had expected a clear idea for 2027, with organic revenue growth toward 6% to 7%, which is below Truist estimates and consensus, but Stryker is likely setting a de-risked guidance for its new incoming CEO Spencer Stiles, according to the note.
Truist reiterated the company's stock rating at hold and lowered the price target to $305 from $310.
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