Medical device maker Stryker Corp. said Wednesday its profit slipped 3 percent in the third quarter on costs related to a string of recent acquisitions.
The company said it earned $327 million, or 84 cents per share, down from $337 million, or 85 cents per share. The company said its third-quarter results included $25 million in acquisition and integration charges related to its purchases of former competitor Orthovita, as well as that of Boston Scientific Corp.'s neurovascular business, and foot and hand implant maker Memometal Technologies.
Stryker said its profit totaled 91 cents per share if one-time items are excluded. Aided by its acquisitions, revenue rose 15 percent, to $2.03 billion from $1.77 billion.
Analysts expected Stryker to report an adjusted profit of 89 cents per share and $2.03 billion in revenue, according to FactSet.
Stryker said revenue from reconstructive products grew 8 percent to $901 million, and revenue from its MedSurg equipment business rose 12 percent to $767 million. Revenue from the neurotechnology and spine unit rose 46 percent to $363 million. The company paid $1.5 billion for that business in January.
Stryker bought Orthovita in June for $304 million, and went on to buy Memometal in July for up to $162 million. Earlier in October, Stryker acquired Concentric Medical, which makes devices used to remove blood clots, for $135 million.
The company raised its 2011 profit estimate and now expects to earn, excluding one-time items, $3.70 to $3.74 per share, up from a previous forecast of $3.65 to $3.73 per share. Analysts are projecting a profit of $3.71 per share on average.
Shares of Stryker rose 36 cents to $49.41 on Wednesday. In after-market trading they dipped 10 cents to $49.31.