8-KEarnings & ResultsExhibits & Filings

STRYKER CORP 8-K Report, Financial Results (Apr 19, 2011)

Filed April 19, 2011For Securities:SYK

Summary

Stryker Corporation filed an 8-K on April 19, 2011, to announce its first quarter 2011 operating results, primarily through an attached press release. The report highlights the company's use of non-GAAP financial measures, including "constant currency" for sales performance and "adjusted diluted net earnings per share" for earnings performance. These measures are presented to provide a more consistent and comparable view of the company's results, excluding the impact of foreign currency fluctuations and specific one-time charges or gains that affect year-over-year comparability. The company also provided forward-looking guidance for its full-year 2011 "adjusted diluted net earnings per share," projecting a range of $3.65 to $3.73. This guidance accounts for anticipated acquisition and integration-related charges stemming from the January 3, 2011 acquisition of the Neurovascular division of Boston Scientific Corporation. Investors are encouraged to review both GAAP and non-GAAP figures for a comprehensive understanding of Stryker's financial performance.

Key Highlights

  • 1Stryker Corporation announced its first quarter 2011 operating results via press release on April 19, 2011.
  • 2The company utilizes non-GAAP financial measures like "constant currency" and "adjusted diluted net earnings per share" to present performance.
  • 3"Constant currency" is used to remove foreign exchange rate impacts for sales comparability.
  • 4"Adjusted diluted net earnings per share" excludes charges that impact the comparability of operating results, such as acquisition/integration costs.
  • 5Full-year 2011 "adjusted diluted net earnings per share" is projected to be between $3.65 and $3.73.
  • 6The projection includes estimated acquisition and integration charges related to the Boston Scientific Neurovascular division acquisition.
  • 7The press release, providing detailed reconciliations, is attached as Exhibit 99.1 to the 8-K filing.

Frequently Asked Questions

Stryker is using "constant currency" to measure sales performance by excluding the impact of foreign currency fluctuations, and "adjusted diluted net earnings per share" to measure earnings performance by excluding items that affect the comparability of operating results.

Stryker provides these non-GAAP measures because management believes they offer meaningful insights into the company's results on a consistent and comparable basis, aiding in the analysis of business trends and potential future performance. They are intended to supplement, not replace, GAAP financial results.

Stryker projects its full-year 2011 adjusted diluted net earnings per share to be in the range of $3.65 to $3.73. This figure is expected to include approximately $0.28 to $0.30 of acquisition and integration-related charges.

The company anticipates these charges in 2011 due to the acquisition of the Neurovascular division of Boston Scientific Corporation, which was completed on January 3, 2011.