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Surgical equipment manufacturer $SYK slipped into loss during 4Q17, following the passage of the new tax legislation. Net loss during the quarter was $249MM, or $0.66 per share, compared to earnings of $510MM, or $1.34 per share in the prior year period. Adj. EPS rose 10.1% to $1.96. Net sales, however rose 10.0% YoY to $3.5Bil in 4Q17.
$SYK said that for 4Q17 its preliminary results are of net sales growth of 10% to $3.5Bil, while for FY17, its net sales grew 9.9% to $12.4Bil. Excluding the impact of foreign currency & acquisitions, net sales rose 8.1% and 7.1% in 4Q17 and FY17. For 2018, $SYK expects modest headwinds that will be manageable within its overall financial targets.
$SYK said Howard Cox Jr. has notified the company that he will not stand for re-election at Stryker's 2018 Annual Meeting, which is expected to be held on May 2, 2018. In light of Cox's immense contributions to the company, he will be named Director Emeritus.
$SYK said that the simplified public tender offer for the shares and BSAAR warrants of VEXIM has closed. $SYK, which already owned over 50% of the share capital and voting rights of VEXIM, acquired an additional 4.04MM shares during the offer period, as well as 226,520 BSAAR warrants that it has exercised for new shares of VEXIM.
$SYK agreed to buy $ENTL for $24 per share, or an equity value of about $662MM. The transaction is expected to be dilutive to $SYK's 2018 adjusted EPS by about $0.04 and accretive thereafter. Guggenheim Securities served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as outside legal counsel for $SYK.
As $CSX posted 3Q17 results, it reaffirmed FY17 adjusted expectations with operating ratio around the high end of mid-60s and EPS growth to be 20–25% off the FY16 reported base of $1.81. Free cash flow before dividends is seen to be around $1.5Bil in the full year.