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Yahoo
16-05-2025
- Business
- Yahoo
SYK Q1 Earnings Call: Stryker Delivers Revenue Beat, Cites International Growth and Tariff Headwinds
Medical technology company Stryker (NYSE:SYK) announced better-than-expected revenue in Q1 CY2025, 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 SYK? Find out in our full research report (it's free). 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 EBITDA: $1.45 billion vs analyst estimates of $1.42 billion (24.7% margin, 2% 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: $149.9 billion Stryker's first quarter results reflected healthy demand across both its MedSurg & Neurotechnology and Orthopaedics divisions, with management highlighting double-digit growth in its U.S. trauma, extremities, neurocranial, and surgical technologies segments. CEO Kevin Lobo emphasized the outperformance of new product platforms, especially the Mako robotic system and Pangea trauma plating system, as key contributors to market share gains. Management also pointed to continued strength in international markets, particularly Australia, New Zealand, Japan, and Europe, as a foundation for ongoing growth. Looking ahead, Stryker's 2025 guidance reflects the company's expectation for continued high-single-digit organic sales growth, while acknowledging several headwinds. CFO Preston Wells noted that tariffs—estimated to impact costs by $200 million this year—will require ongoing mitigation through pricing, supply chain optimization, and disciplined spending. Management cited strong order backlogs and robust demand for capital equipment as supportive factors, but recognized supply chain disruptions in the medical business and the need to integrate recent acquisitions like Inari Medical as considerations for the remainder of the year. Stryker's management attributed the quarter's performance to broad-based demand, new product uptake, and successful execution in core and emerging markets. The following insights summarize the major drivers behind the company's recent financial results: Robotic Surgery Momentum: The Mako robotic platform set a Q1 record for installations, with high utilization rates globally. Management expects continued growth in hips and knees as Mako expands into new indications and geographies. Product Innovation Pipeline: Recent launches, such as the LIFEPAK 35 defibrillator and the Pangea trauma plating system, drove meaningful sales growth. LIFEPAK 35 is set to expand into Europe and Japan, while Pangea will enter Australia and Canada this year and Japan in 2026. International Expansion: Stryker underscored strong growth in Australia, New Zealand, Japan, and Europe, citing these markets as significant future catalysts. The company expects regulatory delays to cause a lag between U.S. and international product uptake, but sees a multi-year runway for international sales. M&A and Portfolio Optimization: The acquisition of Inari Medical was completed, integrating into the vascular division. Stryker also finalized the sale of its U.S. Spinal Implants business, sharpening its strategic focus and capital allocation. Capital Equipment Demand: Management reported double-digit growth across capital businesses and stated that hospital capital spending remains robust, with a healthy order backlog and no current signs of a slowdown. Management expects Stryker's growth to be shaped by ongoing product launches, international expansion, and efforts to offset tariff-related cost pressures. The company's outlook is rooted in strong procedural demand, but it faces operational and macroeconomic uncertainties. Tariff Mitigation Efforts: Stryker plans to counteract the estimated $200 million tariff impact through pricing strategies, expense discipline, and supply chain optimizations. CFO Preston Wells noted that gross and operating margin improvement will depend on successfully executing these measures. Capital Equipment Backlog: The elevated order book for capital equipment is expected to support sales growth through the year, with management citing a six-month visibility into demand. Integration of Acquisitions and Divestitures: The performance of newly acquired Inari Medical and the transition of the U.S. Spinal Implants business out of the portfolio are expected to influence both revenue growth and margin profiles in coming quarters. Marcus Robert (JPMorgan): Pressed on how Stryker will absorb the $200 million tariff impact and what mitigation levers are most effective. Management cited sales momentum, pricing, and discretionary spending as key tools. Larry Biegelsen (Wells Fargo): Asked about the sustainability of operating margin expansion despite tariffs, with Preston Wells clarifying that margin gains will come from both gross margin and operating expense initiatives. Joanne Wuensch (Citi): Inquired about the ongoing integration of Inari Medical and whether there were any surprises post-acquisition. Management reported favorable early results and cultural alignment. Ryan Zimmerman (BTIG): Sought details on the international hip business's growth durability, with CEO Kevin Lobo attributing strong results to recent acquisitions and pending product launches in Europe and Asia-Pacific. Travis Steed (Bank of America): Questioned the details and geographic exposure of the tariff impact, as well as mitigation strategies for 2026. Management said future plans remain flexible due to the changing environment. In the coming quarters, the StockStory team will closely monitor (1) the rollout and adoption pace of new products such as Mako 4 and LIFEPAK 35 in both U.S. and international markets, (2) Stryker's ability to offset tariff-related cost pressures through pricing and operational efficiency, and (3) ongoing strength in capital equipment demand and procedural volumes globally. Additionally, we will watch for integration milestones with Inari Medical and any updates regarding regulatory changes or supply chain disruptions. Stryker currently trades at a forward P/E ratio of 28.4×. At this valuation, is it a buy or sell post earnings? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Reuters
02-05-2025
- Business
- Reuters
Stryker beats quarterly estimates of string medical device demand
May 1 (Reuters) - Stryker (SYK.N), opens new tab beat Wall Street estimates for quarterly profit on Thursday, fueled by strong demand for its medical and surgical devices. Device makers have benefited from a surge in demand as more people in the U.S., particularly older Americans, sought health care services and surgical procedures. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. The Portage, Michigan-based company expects the demand for surgical procedures to continue through the year-end, but expects a tariff impact of about $200 million in 2025. "We expect to offset tariff costs through our continued sales momentum, the leveraging of our manufacturing footprint, disciplined spending and better than expected foreign currency impacts," Chief Financial Officer Preston Wells said. Stryker revised its 2025 profit outlook to between $13.20 and $13.45 per share, down from the previous $13.45 to $13.70 range, which had excluded a 20-30 cent impact from its acquisition of Inari Medical. Analysts expect a profit of $13.35 per share, according to data compiled by LSEG. Sales at Stryker's medical surgery and neurotechnology unit rose 13.4% to $3.5 billion, while sales at its orthopedics segment increased 9.7% to $2.4 billion. The company, which makes implants used in joint replacement and trauma surgeries, said it saw some supply disruptions in the quarter which would linger through the next quarter Total revenue was $5.9 billion for the quarter ended March 31, above analysts' expectations of $5.7 billion. On an adjusted basis, the company earned $2.84 per share, beating estimates of $2.70 per share.
Reuters
28-01-2025
- Business
- Reuters
Stryker forecasts 2025 profit above estimates on robust demand for surgical devices
Jan 28 (Reuters) - Stryker (SYK.N), opens new tab beat Wall Street estimates for fourth-quarter profit and forecast 2025 earnings largely above expectations on Tuesday, fueled by strong demand for its medical and surgical devices. Medical and surgical device makers are riding on a surge in demand as more people in the U.S., particularly older Americans, increasingly opt for elective surgical treatments that were deferred during the COVID-19 pandemic. Stryker forecast adjusted per-share profit for 2025 to be in the range of $13.45 to $13.70, the midpoint of which was above analysts' average estimate of $13.51, according to data compiled by LSEG. Separately, the medical device maker announced it would sell its U.S. spinal implants business to private investment firm Viscogliosi Brothers to form a separate company, VB Spine. The deal is expected to close in the first half of 2025. The company also disclosed the appointment of a new chief financial officer. Preston Wells, finance chief at its orthopaedics unit, will replace incumbent Glenn Boehnlein, effective April 1. Sales at Stryker's medical surgery and neurotechnology unit climbed 10.6% to $3.89 billion and at its orthopedics segment they rose 10.8% to $2.55 billion. Earlier this month, the Michigan-based company signed a $4.9 billion deal to buy Inari Medical to expand its portfolio of products to treat vascular diseases. Stryker's total revenue was $6.44 billion for the three months ended Dec. 31, above analysts' expectations of $6.36 billion. On an adjusted basis, the company earned $4.01 per share, beating estimates of $3.87. Shares of the company fell 1.6% to $389 in extended trading.
Yahoo
28-01-2025
- Business
- Yahoo
Stryker announces the retirement of Glenn S. Boehnlein and the promotion of Preston Wells to Vice President, Chief Financial Officer
Portage, Michigan, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Stryker (NYSE: SYK) announced today that Glenn S. Boehnlein will retire from his role as Vice President, Chief Financial Officer. Boehnlein's decision follows an impressive 22-year career at Stryker. Preston Wells, who currently serves as Group CFO for Stryker's Orthopaedics Group, will assume the role of Vice President, Chief Financial Officer effective April 1, 2025. 'I want to thank Glenn for his performance drive, strong business partnership, and excellent leadership of the Finance and IT organizations. Glenn is a growth champion who invested in developing talent, including Preston Wells, who has been promoted to Chief Financial Officer,' stated Kevin A. Lobo, Chair and Chief Executive Officer, Stryker. 'I am confident in Preston's ability to help Stryker continue to deliver strong results."Wells has held various finance roles at Stryker. In his current role, he collaborates with the Joint Replacement, Trauma & Extremities, Spine, and Digital, Robotics, and Enabling Technologies teams to deliver market leading growth, while providing financial and strategic leadership across the Orthopaedics Group. Previously, Wells led Investor Relations, Enterprise Financial Planning & Analysis, and the sales finance and sales operations teams that supported Stryker's Spine business. Before Stryker, Wells had 17 years of senior accounting and financial management experience, holding finance leadership roles at Dialight Corporation and Johnson & Johnson. He graduated from Bucknell University with a bachelor's in accounting and earned an MBA in Supply Chain Management from Lehigh University. 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 Contacts For investor inquiries please contact:Jason Beach, Vice President, Finance and Investor Relations at 269-385-2600 or For media inquiries please contact:Yin Becker, Vice President, Chief Corporate Affairs Officer at 269-385-2600 or in to access your portfolio
