{
  "docId": "019dd923-622c-750b-8b99-38d956541145",
  "docSlug": "a8618aad4c6b",
  "documentTitle": "Stryker Corp. (SYK)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-04-06 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 59,
  "pageCount": 195,
  "prevPage": 58,
  "nextPage": 60,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 40,
  "notes": "The slide uses a direct quote from a JPM conference to establish the expectation, followed by a table of quarterly financial results to demonstrate the failure to meet that expectation.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "quote_block",
    "data_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-38d956541145/59",
  "deckHref": "/decks/019dd923-622c-750b-8b99-38d956541145",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-38d956541145.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-38d956541145#slide-59",
  "components": [
    {
      "bbox": {
        "h": 0.07,
        "w": 0.89,
        "x": 0.07,
        "y": 0.18
      },
      "kind": "callout",
      "text": "Here is more evidence of Stryker's poor capital allocation policies related to its ERP. The CEO forecasted margin improvements from the project in early 2019, but instead Non-GAAP EBIT margins fell 150 basis points.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2f79a425-2911-47b2-975d-991ef0656d42",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "The CEO forecasted margin improvements from the project in early 2019, but instead Non-GAAP EBIT margins fell 150 basis points.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-25b1-715b-8bda-fa7fadb905e5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Non-GAAP Margin: 150 bps",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-25b1-715b-8bdb-01fe7002e1d0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.43,
        "w": 0.79,
        "x": 0.17,
        "y": 0.27
      },
      "kind": "quote",
      "text": "So that the biggest area is that go live, the 2 areas are ERP... And then starting next year, the actual spend on these programs will start to decrease, and you'll start to have a margin pickup starting in '19.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ff219d71-6d96-4e01-bb5d-b89f68f99d35",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "And then starting next year, the actual spend on these programs will start to decrease, and you'll start to have a margin pickup starting in ‘19. — CEO Kevin Lobo, JPM Conf, Jan 10, 2018",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-25b1-715b-8bda-fdf412a936d6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.15,
        "x": 0.17,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source Stryker Earnings Releases",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "14fb9de3-cec9-41cf-88f8-9dbba038a660",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.15,
        "x": 0.17,
        "y": 0.7
      },
      "kind": "source-note",
      "text": "Source JPM Conf, Jan 10, 2018",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "28862b72-feb8-4534-9c09-5e4b46b48c51",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.23,
        "w": 0.79,
        "x": 0.17,
        "y": 0.73
      },
      "kind": "table",
      "text": "Quarterly financial table showing GAAP/Non-GAAP EBIT, Revenues, and Margins from 2017 Q4 to 2019 Q3.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8e84190d-c940-4057-b878-91c8e68715b6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.09,
        "w": 0.68,
        "x": 0.28,
        "y": 0.03
      },
      "kind": "title",
      "text": "Setting Unrealistic Expectations For The Enterprise Resource Planning (ERP) Project",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "276f7437-01e0-420f-8f9f-0dcbbac5f139",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "bff2431d-b0fa-4c79-9d12-0f6b4acf7db8",
      "evidence": "Contrasts CEO forward-looking statement with historical financial performance data.",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 60,
      "from": 41,
      "beatId": "ef5ec403-e508-48f5-824a-a6a4bebc6f34",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Climax",
      "beatSlug": "mountain-climax",
      "evidence": "The document reaches a climax with a detailed analysis of Stryker's financial performance and management issues.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}