It was a mixed third quarter for Stryker ($SYK), as the company posted a net income increase of 8% but still fell below Wall Street projections, cutting its yearly projection by 1%.
The Michigan device giant pulled in $353 million in net income on the quarter, a boost over last year's $327 million. Revenue jumped 1% to $2.05 billion. However, that number is about $20 million short of Street expectations, the Associated Press reports, and the company is scaling back its earnings forecast for 2012 from 10% to 9%.
Kevin Lobo, Stryker's new CEO, blamed the company's diminishing returns on sluggish markets overseas, especially Europe. And the company doesn't expect things to get much better next year, predicting 7% growth in 2013.
In the third quarter, sales for Stryker's spinal and neurotechnological devices grew by 4.7%, and the company's surgical instrument unit posted a 1.7% increase. However, Stryker reported a 1.1% revenue drop in reconstructive devices, its largest business, including a 3.9% decrease for replacement hips.
Over the past year, Stryker's hip devices have spurred recalls, lawsuits and declining demand, and the company's modest 2013 outlook suggests it's not counting on a reversal of trends. But Stryker is looking to snag market share elsewhere, this week acquiring Israel's Surpass Medical for $135 million. The buyout gives Stryker the NeuroEndoGraft, a brain aneurysm-treating device on track for an IDE and future FDA application.