Stryker (SYK) stock dipped late Tuesday after the medtech company beat Wall Street’s fourth-quarter forecasts, but announced its plan to divest the U.S. spinal business.
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The company plans to sell the business to Viscogliosi Brothers, a family-owned investment firm that will spin it out into a specialized company called VB Spine. The company didn’t disclose the terms of the sale, but said it would take place in the first half of the year.
During the December quarter, the U.S. spine implants business generated $186 million in sales, growing just 3.2% on a strict, as-reported basis. That was Stryker’s slowest growing segment outside of its “other” line item.
In after-hours trades, Stryker stock fell 1.3% to 390. Shares are trading below a buy point at 398.20 out of a cup base, according to MarketSurge. Stryker stock topped its entry on Monday, but sank below that point on Tuesday.
Stryker Stock: Sales, Earnings Beat
Stryker wrapped the fourth quarter with adjusted profit of $4.01 per share and $6.44 billion in sales, beating forecasts for $3.87 and $6.36 billion, respectively. Earnings surged almost 16%, while sales climbed nearly 11%. Organically, sales increased more than 10%.
For the year, Stryker guided to adjusted earnings of $13.45 to $13.70 per share and 8% to 9% sales growth. Analysts called for $13.50 a share in adjusted profit and $24.4 billion in sales.
Follow Allison Gatlin on X/Twitter at @IBD_AGatlin.
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