Summary
Stryker Corporation (SYK) filed an 8-K on January 12, 2010, to provide an update on its expected 2009 results and its outlook for 2010. The company is presenting "constant currency" sales figures and "adjusted diluted net earnings per share" as supplemental non-GAAP financial measures to offer a clearer view of operational performance, excluding items that affect comparability. These non-GAAP measures are used by management for internal analysis and bonus calculations and are provided to investors to facilitate a better understanding of period-to-period results and future operating potential. Key financial information includes projected 2009 reported diluted EPS in the range of $2.75 to $2.78. After adjusting for restructuring charges, a patent litigation gain, and income taxes on foreign earnings repatriation, the projected adjusted diluted EPS for 2009 is expected to be between $2.94 and $2.96. The company also provided adjusted diluted EPS for 2008, which was $2.83 after excluding restructuring charges. Stryker emphasizes that these non-GAAP measures should be used in conjunction with, and not as a replacement for, its GAAP financial statements.
Key Highlights
- 1Stryker released an 8-K on January 12, 2010, updating 2009 results and providing a 2010 outlook.
- 2The company is using non-GAAP financial measures: 'constant currency' for sales and 'adjusted diluted net earnings per share' for earnings.
- 3These non-GAAP measures aim to provide a more comparable view of performance by excluding specific items.
- 4For 2009, projected reported diluted EPS was $2.75-$2.78; adjusted diluted EPS was projected at $2.94-$2.96.
- 5Adjustments for 2009 included restructuring charges, a patent litigation gain, and income taxes on foreign earnings repatriation.
- 6For 2008, reported diluted EPS was $2.78; adjusted diluted EPS was $2.83 after excluding restructuring charges.
- 7Stryker encourages investors to review its full GAAP financial statements alongside these non-GAAP metrics.