Stryker Q4 - Double Digit Growth Amid Delay In Elective Surgery

Medical technology company Stryker reported mixed fourth-quarter results last week. Not for the first time, Covid delayed many elective surgical procedures. The company reported revenues of $4.70 billion and profits of $662 million for the quarter, up 10.3% and 16.5% year-on-year, respectively.

The Omicron variant was not the only thing that dragged down elective surgery volumes. According to VP Preston Wells, the ongoing nursing staff shortage also disrupted hospital scheduling. On top of that, the group had delays completing installations of high-demand capital equipment in theatre rooms, wards and doctors' practices.

Despite these headwinds, Stryker's cutting-edge Mako robotic surgery system continued to sell well, managing to increase its installed base by 27% and taking the number of these robots in service to 1 500. The MedSurg division was also hard-hit by general supply chain shortages.

Management expects organic growth of 6% to 8% for 2022, this is a bit lower than the 9% achieved in 2021. I am amazed at how Stryker has managed to push through the pandemic, a truly resilient company. We expect less panic and more disco in the future. This is a good time to buy more Stryker shares.