Latest news with #KevinA.Lobo
Yahoo
06-05-2025
- Business
- Yahoo
Reflecting On Medical Devices & Supplies - Diversified Stocks' Q1 Earnings: Stryker (NYSE:SYK)
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the medical devices & supplies - diversified stocks, including Stryker (NYSE:SYK) and its peers. The medical devices industry operates a business model that balances steady demand with significant investments in innovation and regulatory compliance. The industry benefits from recurring revenue streams tied to consumables, maintenance services, and incremental upgrades to the latest technologies. However, the capital-intensive nature of product development, coupled with lengthy regulatory pathways and the need for clinical validation, can weigh on profitability and timelines. In addition, there are constant pricing pressures from healthcare systems and insurers maximizing cost efficiency. Over the next several years, one tailwind is demographic–aging populations means rising chronic disease rates that drive greater demand for medical interventions and monitoring solutions. Advances in digital health, such as remote patient monitoring and smart devices, are also expected to unlock new demand by shortening upgrade cycles. On the other hand, the industry faces headwinds from pricing and reimbursement pressures as healthcare providers increasingly adopt value-based care models. Additionally, the integration of cybersecurity for connected devices adds further risk and complexity for device manufacturers. The 5 medical devices & supplies - diversified stocks we track reported a mixed Q1. As a group, revenues beat analysts' consensus estimates by 1.1% while next quarter's revenue guidance was in line. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions. Stryker reported revenues of $5.87 billion, up 11.9% year on year. This print exceeded analysts' expectations by 3.2%. Overall, it was a strong quarter for the company with a solid beat of analysts' organic revenue estimates and a decent beat of analysts' EPS estimates. 'Our 2024 momentum continued into the first quarter as we delivered double-digit organic sales growth and continued to expand adjusted operating margins,' said Kevin A. Lobo, Chair and CEO. Stryker achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 2% since reporting and currently trades at $381.36. Is now the time to buy Stryker? Access our full analysis of the earnings results here, it's free. Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE:BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties. Boston Scientific reported revenues of $4.66 billion, up 20.9% year on year, outperforming analysts' expectations by 2%. The business had a very strong quarter with a solid beat of analysts' organic revenue and EPS estimates. Boston Scientific pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.6% since reporting. It currently trades at $104.05. Is now the time to buy Boston Scientific? Access our full analysis of the earnings results here, it's free. Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ:NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health. Neogen reported revenues of $221 million, down 3.4% year on year, falling short of analysts' expectations by 1.5%. It was a disappointing quarter as it posted a significant miss of analysts' EPS estimates and full-year EBITDA guidance missing analysts' expectations. Neogen delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 19.5% since the results and currently trades at $5.65. Read our full analysis of Neogen's results here. With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories (NYSE:ABT) develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals. Abbott Laboratories reported revenues of $10.36 billion, up 4% year on year. This result was in line with analysts' expectations. Taking a step back, it was a mixed quarter as it also logged a decent beat of analysts' EPS estimates but a slight miss of analysts' organic revenue estimates. The stock is up 4.9% since reporting and currently trades at $132.40. Read our full, actionable report on Abbott Laboratories here, it's free. With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE:BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide. Baxter reported revenues of $2.63 billion, up 5.4% year on year. This print topped analysts' expectations by 1.9%. Overall, it was a strong quarter as it also logged a solid beat of analysts' constant currency revenue estimates and an impressive beat of analysts' EPS estimates. The stock is flat since reporting and currently trades at $30.87. Read our full, actionable report on Baxter here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
02-05-2025
- Business
- Yahoo
Stryker's (NYSE:SYK) Q1: Beats On Revenue
Medical technology company Stryker (NYSE:SYK) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 11.9% year on year to $5.87 billion. Its non-GAAP profit of $2.84 per share was 4% above analysts' consensus estimates. Is now the time to buy Stryker? Find out in our full research report. Revenue: $5.87 billion vs analyst estimates of $5.68 billion (11.9% year-on-year growth, 3.2% beat) Adjusted EPS: $2.84 vs analyst estimates of $2.73 (4% beat) Adjusted EPS guidance for the full year is $13.33 at the midpoint, missing analyst estimates by 1% Operating Margin: 14.3%, down from 18.5% in the same quarter last year Free Cash Flow Margin: 2.2%, up from 0.7% in the same quarter last year Organic Revenue rose 10.1% year on year, in line with the same quarter last year Market Capitalization: $142.7 billion 'Our 2024 momentum continued into the first quarter as we delivered double-digit organic sales growth and continued to expand adjusted operating margins,' said Kevin A. Lobo, Chair and CEO. With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Stryker grew its sales at a decent 9.2% compounded annual growth rate. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Stryker's annualized revenue growth of 10.7% over the last two years is above its five-year trend, suggesting some bright spots. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Stryker's organic revenue averaged 10.4% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Stryker reported year-on-year revenue growth of 11.9%, and its $5.87 billion of revenue exceeded Wall Street's estimates by 3.2%. Looking ahead, sell-side analysts expect revenue to grow 7.5% over the next 12 months, a deceleration versus the last two years. We still think its growth trajectory is satisfactory given its scale and implies the market sees success for its products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Stryker has managed its cost base well over the last five years. It demonstrated solid profitability for a healthcare business, producing an average operating margin of 16.2%. Analyzing the trend in its profitability, Stryker's operating margin rose by 1.4 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming into its more recent performance, however, we can see the company's margin has decreased by 1.2 percentage points on a two-year basis. If Stryker wants to pass our bar, it must prove it can expand its profitability consistently. This quarter, Stryker generated an operating profit margin of 14.3%, down 4.3 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Stryker's solid 8.8% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable. In Q1, Stryker reported EPS at $2.84, up from $2.50 in the same quarter last year. This print beat analysts' estimates by 4%. Over the next 12 months, Wall Street expects Stryker's full-year EPS of $12.54 to grow 10.2%. We enjoyed seeing Stryker beat analysts' revenue expectations this quarter. We were also glad its organic revenue outperformed Wall Street's estimates. On the other hand, its full-year EPS guidance slightly missed. Overall, this print was mixed. The stock remained flat at $372 immediately after reporting. Big picture, is Stryker a buy here and now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
28-01-2025
- Business
- Yahoo
Stryker announces definitive agreement for the sale of its U.S. spinal implants business and plans to sell related international business
Portage, Michigan, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK), a global leader in medical technologies, announced today a definitive agreement to sell its U.S. spinal implants business to Viscogliosi Brothers, LLC, a family-owned investment firm specializing in the neuro-musculoskeletal space, to create a newly formed company called VB Spine, LLC. 'We believe that the spinal implants business, with its comprehensive portfolio and strong sales channel, will thrive as an independent company," said Kevin A. Lobo, Chair and Chief Executive Officer, Stryker. "With dedicated resources and a focused strategy, the business will be well positioned to succeed as part of Viscogliosi Brothers.' After closing, VB Spine will become a strategic partner to Stryker with exclusive access to Mako Spine and Copilot for use with VB Spine's implants in spine procedures. The transaction will enhance the focus of both Stryker and VB Spine to meet the needs of customers and their patients and is expected to achieve faster growth and deliver greater value for all stakeholders. 'We have long admired Stryker for its comprehensive spine portfolio, incredible talent, and strong culture,' said Marc, John and Anthony Viscogliosi, Co-Founders of Viscogliosi Brothers, LLC. 'We see a tremendous opportunity to provide the focus, surgeon-centric innovation, and commercial execution needed to grow the business and further impact patient lives and outcomes.' The definitive agreement also includes a binding offer to acquire Stryker's spinal implants business in France, subject to required consultations with employees and/or employee representatives. The sale of Stryker's spinal implants business in other international markets is anticipated, pending satisfaction of legal and regulatory requirements, including any required consultations. The transaction is expected to close in the U.S. in the first half of 2025, subject to customary closing conditions. Stryker's U.S. spinal implants business and VB Spine will continue to operate as separate entities and proceed with business as usual until the transaction closes. In connection with the transaction, Barings, LLC is an investor and financial partner to Viscogliosi Brothers. About Stryker Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology and Orthopaedics that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at About Viscogliosi Brothers Viscogliosi Brothers is a family-owned New York City-based family office dedicated to driving growth and innovation in the neuro-musculoskeletal industry. Established in 1999, the firm focuses on identifying and building groundbreaking innovations in healthcare, aiming to address unmet clinical needs, enhance patient outcomes, and drive cost efficiency in the healthcare system. Since its inception 26 years ago, Viscogliosi Brothers has founded, financed, operated and grown 42 businesses with operations and distribution across more than 80 countries. These businesses have positively impacted millions of patients with cutting-edge innovations in healthcare. The firm has led the transformation of multiple businesses in the spine industry specifically including: Spine Solutions, Spine Next, Paradigm Spine, Simplify Medical, Centinel Spine, Companion Spine, Spine BioPharma and Woven Orthopedics Technologies, among others. For more information, visit About Barings Barings is a $421+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions.*Assets under management as of December 31, 2024 Contacts For investor inquiries please contact:Jason Beach, Vice President, Finance and Investor Relations at 269-385-2600 John Nguyen, Senior Director, Investor Relations at 269-385-2600 or For media inquiries please contact:Jenny Braga, Director, Communications and Public Relations at 269-385-2600 or in to access your portfolio
