Stryker
(NYSE: SYK)
this evening reported second-quarter results that beat the Wall Street consensus forecast, prompting it to up its full-year guidance.
The Kalamazoo, Michigan–based orthopedic device giant reported an 11.2% year-over-year increase in Q2 sales to $5.0 billion, surpassing the analysts’ anticipated revenue of $4.82 billion. Earnings were up 12.% to $738 million for the quarter ended June 20, 2023.
Stryker reported EPS growth of 12.2% to $1.93, with adjusted EPS up 12.9% to $2.54, beating The Street’s consensus of $2.38 by 16¢.
“We delivered strong organic sales growth in the second quarter as demand for our products remains strong,” CEO Kevin Lobo said in a news release. “We are back on our margin expansion pathway, and our supercycle of innovation is going well.”
Both of Stryker’s business segments exhibited strong performance. MedSurg and Neurotechnology net sales amounted to $2.9 billion, showing an increase of 12.2%. Orthopaedics and Spine net sales, at $2.1 billion, rose by 9.9%.
In light of the Street-beating Q2 results, Stryker has raised its full-year 2023 outlook. The company now anticipates organic net sales growth to be within the 9.5% to 10.5% range, including slightly positive pricing for the year. If foreign exchange rates remain near current levels, Stryker projects a net sales unfavorable impact of 0.3% and an adjusted net earnings per diluted share unfavorable impact of 5¢ to 10¢ for the full year.
Boosted by strong sales momentum, Stryker now projects adjusted net earnings per share to be within the range of $10.25 to $10.45.
BTIG analysts Ryan Zimmerman, Sam Durno, and Iseult McMahon maintained their Buy rating on SYK shares: “The only weak spot across the entire portfolio was SYK’s Spine business, but beyond this, it was about as clean and typical of a SYK top-line performance as can be. … We think what investors should take to heart is the margin performance.”
As the report came out, SYK shares increased more than 3% to $284 apiece in after-hours trading.
