Published in Health Care

Stryker sales grow 55% as company regains pre-COVID ‘rhythm’

BY Wednesday, July 28, 2021 11:28am

KALAMAZOO — Stryker Corp.’s sales grew 55 percent in the second quarter, driven primarily by a return of business lost last year with the onset of the COVID-19 pandemic.

The Kalamazoo-based Stryker (NYSE: SYK) on Tuesday reported $4.29 billion in revenue for the April-to-June period. That compares to sales of $2.76 billion for the second quarter of 2020, when many care providers put capital investments on hold and non-emergency care was deferred amid the pandemic and stay-at-home orders.

Stryker Chairperson and CEO Kevin Lobo COURTESY PHOTO

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Stryker’s sales grew 42.9 percent organically from the second quarter of 2020 after accounting for the $4 billion acquisition last November of Wright Medical Group N.V., a Netherlands-based maker of orthopedic products for the ankle, wrist, foot and shoulder.

Stryker recorded $592 million, or $1.55 per diluted share, in quarterly net income, versus a net loss of $83 million, or 22 cents per diluted share, a year earlier.

In announcing the quarterly results, the corporation raised guidance for the rest of 2021. The company expects organic sales growth of 9 to 10 percent for the year with $9.25 to $9.40 in adjusted net earnings per share.

Stryker Chairperson and CEO Kevin Lobo said the strong second quarter results indicate that “business momentum continues to build as the pandemic moderates” and that the integration of Wright Medical “is pacing ahead of plan.”

“It feels good to be sort of getting back to normal. It isn’t totally normal. There are these pockets of disruption. But I would say that surgeons are starting to fill up their schedules, they’re taking meetings with us (and) they’re coming to trainings,” Lobo said in a conference call with analysts. “And so we feel like we’re sort of almost getting back to the kind of rhythm we had before. You can see it in our guidance.”

Stryker’s U.S. sales for the second quarter grew 57.7 percent to $3.1 billion while foreign sales increased 49.7 percent to $1.9 billion. The corporation’s orthopedics division led the way with an 82 percent sales increase to $1.62 billion.

Midway through 2021, Stryker’s sales totaled $8.24 billion, an increase of nearly 30 percent from the $6.35 billion in the first half of 2020. Net income more than doubled from a year earlier to $894 million, or $2.34 per diluted share.

Read 5407 times Last modified on Wednesday, 28 July 2021 14:55