Implants And Joint Replacement Company Stryker Tightens Annual Forecast On 'Positive Procedural Trends'

Stryker Corporation SYK reported Q3 sales of $4.9 billion, up 9.6% Y/Y (+9.3% in constant currency), beating the consensus of $4.86 billion.

Organic net sales increased 9.2% in the quarter, including 8.9% from increased unit volume and 0.3% from higher prices.

MedSurg and Neurotechnology net sales of $2.9 billion increased by 10.5% (+10.3% in constant currency). Organic net sales increased 10.1% in the quarter, including 8.7% from increased unit volume and 1.4% from higher prices.

Orthopaedics and Spine net sales of $2.1 billion increased 8.4% in the quarter and 8% in constant currency. Organic net sales increased 8.0% in the quarter, including 9.1% from increased unit volume partially offset by 1.1% from lower prices.

"We delivered another quarter of strong organic sales growth and continued margin expansion," said Kevin Lobo, Chair and CEO. "The positive momentum in our business remains intact, including a strong procedural environment and our supercycle of innovation."

Adjusted EPS came in at $2.46, which increased 16% in the quarter, beating the consensus of $2.43.

Guidance: Stryker predicts 2023 organic net sales growth of 10%-10.5% versus the prior range of 9.5%-10.5%, including slightly positive pricing for the year.

The company says the guidance boost follows a robust backlog for capital equipment and continued positive procedural trends.

Stryker now expects 2023 adjusted EPS of $10.35-$10.45 versus prior guidance of $10.25-$10.45 and the consensus of $10.37.

Price Action: SYK shares are down 3.68% at $265 premarket on the last check Friday.