Research archive for SYK

On Thursday Stryker announced that they are buying Vocera Communications for $3 billion. Here is a high-level description of the business: "Vocera caters to nearly 1 900 hospitals, allowing healthcare workers to communicate and collaborate with co-workers and engage with patients and their families". Looking at their website, they seem to be a hospital management system making it easy for staff members to interact with each other and have easy access to patient information.

Stryker was hit hard by Covid because elective surgeries were halted and hospitals' priorities changed drastically. As the world slowly normalises, the recovery has been lumpy. People needing hip and knee replacements have booked appointments in droves but theatre staff are in short supply as Covid variants keep popping up.

Medical device-maker Stryker reported second-quarter numbers last week. The results were fine, and the stock moved to a new all-time high above $270 per share.

Picture this. You are a Vestact client and you wake up on a Saturday morning, make yourself a coffee and check your emails. Your weekly mini-statement pops up and you scroll through it briefly. Looking good, nice to see Stryker above $260 a share again. You delete the email and go for a run.

Last week Stryker reported earnings; it beat on revenue but missed on profit estimates. Just before Covid wrecked the markets in March last year, Stryker was trading at around $225 a share. Currently the share price is around $230, it's up, but not by much, especially if we compare it to the likes of the technology companies.

As the year kicked off and while many were at the coast just watching the ocean but not on the beach, Stryker announced another bolt-on acquisition. The Stryker business model is to acquire niche medical device businesses and integrate their products into the Stryker product offering. The strategy is effective because Stryker already has a brilliant brand in the medical industry, and they have an established sales network. It means that any bolt-on can see a quick ramp-up in adoption.

Stryker released its earnings last week Thursday at the same time as all our big technology holdings, I'm happy to be finally getting around to writing about this amazing business. In the last set of results, this business was hurt a lot by a decline in elective surgeries in order to enforce social contact restrictions as a response to the Covid-19 pandemic.

A lot of big tech stocks reported second quarter results last night and all of them were up nicely after hours. Our four largest tech holdings are Apple, Amazon, Google and Facebook and they all blew the barn doors off and will likely trade at new record highs later today.

Last week Stryker reported Q1 earnings. As a medical device business, this company stands to be hard hit by COVID-19. Most of their equipment relies on elective surgeries like hip and knee replacements. The share price is down 20% from its February highs so the market has factored in a lot of this already.

Medical Technology giant Stryker which is famous for their medical devices, surgical tools, hip and knee replacements released market beating Q4 and full-year numbers. The momentum continues as net sales for the quarter grew by 8.8% to $4.1 billion thanks to improving margins in the overall business as well as a top performance from the Neurotechnology and Spine business which grew net sales by a staggering 18%.

Stryker stock has been a little weak lately. Our medical devices holding in New York had a great run to above $220 per share on good results, but sagged to below $200 in recent days, on news that they will spend up to $5.4 billion to acquire Wright Medical Group (share code WMGI).

A friendly client of ours forwarded me a quarterly market commentary from a US-based asset manager last night. The firm is bearish, concerned about market levels and advising clients to sell stocks. They say that avoiding losing money is better than missing opportunities. They advise the buying of gold, silver and US Treasuries and the hoarding of lots of cash. Their clients must be glumly watching as the market makes new all-time highs?! As it goes higher, people of a bearish inclination become even more keen to sell.

Yesterday our favourite medical devices consolidator announced another bolt-on acquisition. Stryker is buying Canadian listed TSO3 for C$68.4m ($52m), an 18% premium to its 30-day average.

On Thursday night Stryker released second quarter results which impressed the market. Sales increased by 9.9%. Take a look below at their three divisions and where that growth came from.

On Tuesday after the US market closed, Stryker released their latest quarters results. Continuing the form of other companies, Stryker beat both on revenue and earrings. Even though the company beat analyst expectations, share were down yesterday. I suppose it shows that the market is expecting big beats.