KALAMAZOO, Mich. -- Medical device maker Stryker Corp. cut its 2012 net income forecast on Wednesday and issued a disappointing outlook for 2013, pointing to weak sales of equipment and the sluggish economy in Europe.
Stryker had said its net income would rise at least 10 percent this year. It now expects growth of about 9 percent. That amounts to $4.04 to $4.07 per share for the year. The company forecast income of $4.25 to $4.40 per share in 2013, or growth of around 7 percent.
"We expect market conditions to remain challenging in Europe and for capital equipment," President and CEO Kevin Lobo said in a press release.
Analysts expected Stryker to earn $4.09 per share in 2012 and $4.45 per share in 2013, according to FactSet.
Stryker's net income rose 8 percent in the third quarter to $353 million, or 92 cents per share, from $327 million, or 84 cents per share, one year ago. The company posted a profit of 97 cents per share in the latest quarter, if one-time charges are excluded. Revenue edged up 1 percent, to $2.05 billion.
Analysts forecast net income of 98 cents per share and $2.07 billion in revenue.
Stryker said revenue from reconstructive products fell 1 percent to $891 million, as sales of hip implants declined. Revenue from its MedSurg equipment business rose 2 percent to $781 million and revenue from the neurotechnology and spine business grew nearly 5 percent to $380 million.
Stryker shares lost 64 cents to close at $52.82. They declined another $1.12, or 2.1 percent, to $51.70 in aftermarket trading.