Stryker Q3 - Earnings & Revenue Top Estimates

After a tough 2022, this earnings season is a bit more tense than usual. Vestact-recommended medical device company Stryker reported numbers after the market's close last night, thankfully beating both top and bottom line expectations. As mentioned above, the stock rose smartly in after-hours trading.

The business saw solid growth from its international division, but a stronger US Dollar nullified most of those gains. In constant currency terms, sales were up 11.7% outside the US, but when translated back to Dollars, it was only up 0.5%. As Byron wrote recently, these currency cycles turn and what is a headwind now, will become a tailwind later.

Stryker is a company that likes to make bolt-on acquisitions to complement its current product portfolio. The one upside of 2022 being a terrible year for asset prices is that it makes these acquisitions cheaper for Stryker. The company's primary plan is to pay down debt from previous acquisitions but likes the current prices they see in the market.

Management notes that they are finally back in a pre-Covid environment, in terms of elective surgeries. There had been a lot of pent-up demand, due to hospital lockdowns, that the company has worked through. Sales are now flowing smoothly, with strong growth forecast for the year ahead.

It is during the hard times that quality shines through. Stryker has shown that it is a top-notch business.