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  "documentTitle": "Stryker Corp. (SYK)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2022-04-06 00:00:00",
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  "notes": "Uses Bloomberg SURP function data to demonstrate a pattern of missed expectations.",
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      "kind": "callout",
      "text": "Does a company that fails to hit a key metric 9 out of 11 years during the greatest bull market in history deserve a premium valuation?",
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      "kind": "callout",
      "text": "A decade ago the market thought Stryker could produce a 68% gross margin. Its gone down since",
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      "text": "The market is looking for 110 bps of gross margin expansion in the highest inflationary environment in decades, while supply chains issues and war weighs on global uncertainty. Does this really seem like a realistic forecast? Our expert interviews describe Stryker's issues and failure to implement a global ERP as a limiting factor",
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      "text": "gross margin: 66.271",
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      "kind": "paragraph",
      "text": "Spruce Point observes that the market has been systematically overly-optimistic about the direction of Stryker's gross margins. They've continue to contract over a decade, and now with the worst inflation and supply chain issues in recent history, the market still thinks they will expand. We believe Stryker will yet again disappoint investors.",
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      "kind": "quote",
      "text": "2011 Year End Call: “For gross margins, we are calling for the underlying range to remain steady, with a subtle, favorable bias subject to the variations driven by currency, business mix and global operations investments”",
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      "kind": "quote",
      "text": "2010 Year End Call: “Going forward, we do anticipate year-over-year gross margin improvement, partly resulting from our focus in our manufacturing operating model.”",
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      "kind": "quote",
      "text": "2010 Year End Call: “Going forward, we do anticipate year-over-year gross margin improvement, partly resulting from our focus in our manufacturing operating model.”; 2011 Year End Call: “For gross margins, we are calling for the underlying range to remain steady, with a subtle, favorable bias subject to the variations driven by currency, business mix and global operations investments” — Stryker Corp.",
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      "text": "Source: Bloomberg SURP function",
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      "text": "Table showing Ann Date, Per End, Reported, Comp, Estimate, and %Surp for 11 years.",
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      "kind": "title",
      "text": "The Market's Expectations Are Too High For Stryker's Gross Margins",
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