Stryker posted higher first-quarter profit on Wednesday but missed Wall Street’s expectations for both sales and earnings as a March cyberattack disrupted operations and delayed some shipments. The medical device group said net income rose to $745 million, or $1.93 a share, from $654 million a year earlier, but adjusted earnings per share came in at $2.60, below the $2.98 forecast tracked by analysts.

Revenue reached $6.02 billion for the three months to 31 March, up 2.6% from a year earlier but short of the $6.35 billion consensus estimate. Shares slipped about 2% in after-hours trade to $308.75 after the results, according to the company’s earnings release and market data cited in the reports.

Management said the cyber incident had a meaningful effect on the quarter, with reporting from MedTech Dive and MarketBeat saying production was interrupted for nearly three weeks and that shipments and revenue recognition were pushed back. Stryker said operations were restored in early April, and executives indicated they expect much of the lost business to be recovered later in the year.

The company’s business lines moved unevenly. MedSurg and Neurotechnology, Stryker’s largest division, grew 5% to $3.21 billion, while Orthopaedics was roughly flat in one report and up 6.3% to $2.81 billion in another estimate-based comparison. Even so, Stryker kept its full-year outlook unchanged, reiterating adjusted earnings guidance of $14.90 to $15.10 per share and organic sales growth of 8.0% to 9.5%, signalling that it sees the cyber-related hit as largely confined to the first quarter.

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Source: Noah Wire Services