Stryker 2Q numbers

Another of our Vestact top stocks, Stryker, was out with a quarterly update last night. Obviously we use this newsletter to report on such news, since our customers are our readers and they own Stryker.

There are quite a few medical device makers, the biggest ones are Medtronic, Johnson & Johnson (DePuy Synthes division) - note, also a Vestact stock -, Fresenius, Philips Healthcare and GE (Healthcare division). Stryker is actually in the eighth spot worldwide, ranked by revenue. It is a pure-play medical device maker, which is why we like it. It is a leader in endoscopy tools, robotic surgical devices, replacement hips, knees and spinal parts.

This stock has done well lately. Consider this five-year chart.



Remember, we own it because we believe that healthcare spending is in the middle of a massive, multi-decade expansion as people get richer, older and more inclined to spend their savings on staying alive. That means more hospital visits, more surgical devices, more reconstructive surgeries.

Consolidated net sales of $3.3 billion increased 11.0% in the quarter. Earnings per share were $1.19 for the quarter, an increase of 15.5%. Gross margins are good, as you might expect: 66.1%. Earnings guidance was solid. Its all systems go at Stryker. The management team under CEO Kevin Lobo is rumoured to be deal-hungry. We shall see. It has a market capitalisation of $64.5 billion.