Stryker Q4 - Back to double digit growth

A week ago Stryker reported strong first-quarter earnings and provided an upbeat outlook for the fiscal year. The medical device company's sales came in at $4.80 billion, up 11.8% year-over-year (or 14% in constant currency), surpassing the consensus estimate of $4.56 billion.

Demand for elective surgeries is back after a big slump in the Covid period. The time for that knee or hip replacement is now! Imagine having to delay a back operation. The growth in sales was primarily driven by a 13.6% increase in organic demand, with unit volume accounting for 12.9% growth and higher prices contributing 0.7%.

Stryker sells a lot of stuff that you will find in private hospitals. Within its business segments, Medical surgery equipment and neurotechnology sales reached $2.7 billion, indicating an 11% increase. Orthopaedics and spine net sales amounted to $2.1 billion, reflecting a 12.7% growth in the quarter.

CEO Kevin Lobo commented that the company continues to experience strong demand for its products, with gradual improvements in the supply chain pressures.

For the full year 2023, Stryker now predicts organic net sales growth of 8 to 9%, up from its previous expectation of 7 to 8.5%. The increased forecast is based on a solid order book from doctors and hospital administrators for their capital equipment.

The company revised its adjusted EPS guidance to a range of $10.05 to $10.25, compared to the prior forecast of $9.85 to $10.15 per share, surpassing the consensus estimate of $10.03.

Despite these positive results and improved outlook, the market responded by taking Stryker's stock slightly lower. However, it has had a very strong year, and recently traded at an all-time high. Stryker continues to be our favourite in the medical technology space as it offers superior products.