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Medical device company Stryker demonstrated a robust performance in the fourth quarter, with reported net sales increasing by 11.8% to $5.8 billion thanks to rising demand for elective surgeries. Stryker has been a Vestact-recommended stock since January 2014, exactly a decade ago.
For the full year, Stryker reported sales growth of 11.1% to $20.5 billion. Operating margins remained healthy, with earnings per share showing a very pleasing growth of 33.7% to $8.25.
Management attributed the strong performance to the MedSurg and Neurotechnology segment which grew by 12.1% in 2023, as well as the Orthopaedics and Spine segment which added 11.1% for the year.
Looking ahead to 2024, Stryker expects continued sales momentum, with strong procedural volumes and healthy demand for capital products. The company forecasts organic net sales growth to be in the range of 7.5% to 9.0% and adjusted net earnings per share to be in the range of $11.70 to $12.00.
We remain optimistic that Stryker will be able to build on its solid performance thanks to their commitment to innovation in the medical technology sector. It also helps that all the supply chain pressures are a thing of the past.
The company's shares are up 28% in the last year and they continue to be our favourite investment in the sector. The picture below shows the Mako robotic surgery system, one of their best-sellers.
