8-KEarnings & ResultsExhibits & Filings

STRYKER CORP 8-K Report, Financial Results (Jan 9, 2009)

Filed January 9, 2009For Securities:SYK

Summary

Stryker Corporation (SYK) filed an 8-K on January 9, 2009, to announce an update to its expected financial results for the full year 2008 and its outlook for 2009. The company provided forward-looking statements regarding its financial performance, including anticipated earnings per share (EPS) ranges. Key to this update is the company's use of non-GAAP financial measures, such as 'constant currency' and 'adjusted diluted net earnings per share.' Stryker explained that these measures are used internally for performance evaluation and bonus calculations, and are provided to investors to offer a more comparable view of operational performance by excluding specific charges like restructuring costs and intangible asset impairments. Investors should note these adjustments when evaluating the company's results and future projections.

Key Highlights

  • 1Stryker Corporation (SYK) released an 8-K on January 9, 2009, providing updated financial expectations for 2008 and a 2009 outlook.
  • 2The company utilized non-GAAP financial measures including 'constant currency' and 'adjusted diluted net earnings per share' in its announcement.
  • 3These non-GAAP measures are presented to offer a more consistent and comparable view of operational performance by excluding specific items.
  • 4For 2008, Stryker projected reported diluted EPS to be in the range of $2.77 to $2.79.
  • 5The company also projected adjusted diluted EPS for 2008 (excluding a restructuring charge) to be between $2.82 and $2.84.
  • 6For 2007, adjusted diluted EPS from continuing operations (excluding an intangible asset impairment charge) was $2.40.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with updated financial expectations for Stryker Corporation's full year 2008 results and its outlook for 2009. It also details the non-GAAP financial measures the company uses.

'Constant currency' is a non-GAAP measure that removes the impact of foreign currency exchange rate fluctuations to better reflect sales performance. 'Adjusted diluted net earnings per share' is a non-GAAP measure that excludes certain charges (like restructuring or impairment charges) to provide a more consistent view of earnings performance.

Stryker uses non-GAAP measures to provide meaningful information about its results on a consistent and comparable basis. Management uses these measures for internal reviews, trend analysis, budget processes, and bonus calculations. The company believes these supplemental measures help investors evaluate period-to-period results and understand potential future operating results more effectively.

Stryker projected its reported diluted net earnings per share for the year ended December 31, 2008, to be in the range of $2.77 to $2.79. The adjusted diluted net earnings per share, excluding a restructuring charge, was projected to be between $2.82 and $2.84.