Company News
Stryker reports Q2 2024 operating results
Stryker reported operating results for the second quarter of 2024:
Second quarter results
- Reported net sales increased 8.5% to $5.4 billion
- Organic net sales increased 9.0%
- Reported operating income margin of 19.4%
- Adjusted operating income margin(1) increased 30 bps to 24.6%
- Reported EPS increased 10.9% to $2.14
- Adjusted EPS(1) increased 10.6% to $2.81
“We delivered another quarter of strong organic sales growth,” said Kevin A. Lobo, Chair and CEO. “We remain committed to our margin expansion goals and are excited about our product and M&A pipelines.”
Sales analysis
Consolidated net sales of $5.4 billion increased 8.5% in the quarter and 9.4% in constant currency. Organic net sales increased 9.0% in the quarter including 7.9% from increased unit volume and 1.1% from higher prices.
MedSurg and Neurotechnology net sales of $3.1 billion increased 9.0% in the quarter and 9.8% in constant currency. Organic net sales increased 9.7% in the quarter including 7.6% from increased unit volume and 2.1% from higher prices.
Orthopaedics and Spine net sales of $2.3 billion increased 7.9% in the quarter and 8.9% in constant currency. Organic net sales increased 8.0% in the quarter including 8.4% from increased unit volume partially offset by 0.4% from lower prices.
Earnings analysis
Reported net earnings of $825 million increased 11.8% in the quarter. Reported net earnings per diluted share of $2.14 increased 10.9% in the quarter. Reported gross profit margin and reported operating income margin were 63.0% and 19.4% in the quarter. Reported net earnings include certain items, such as charges for acquisition and integration-related activities, the amortization of purchased intangible assets, structural optimization and other special charges (including asset write-offs and impairments), costs to comply with certain medical device regulations, recall-related matters, regulatory and legal matters and tax matters. Excluding the aforementioned items, adjusted gross profit margin(1) was 64.2% in the quarter, and adjusted operating income margin(1) was 24.6% in the quarter. Adjusted net earnings(1) of $1,085 million increased 11.2% in the quarter. Adjusted net earnings per diluted share(1) of $2.81 increased 10.6% in the quarter.
2024 outlook
Based on our year-to-date performance and our positive outlook related to sustained procedural volumes and a healthy demand for our capital products, we now expect full year 2024 organic net sales growth(2) to be in the range of 9.0% to 10.0% with a favorable pricing impact of approximately 0.5%. If foreign exchange rates hold near current levels, we anticipate a moderately unfavorable impact on full year net sales and now expect adjusted net earnings per diluted share(2) will be negatively impacted in the range of $0.10 to $0.15. This is reflected in our guidance. Given our sales momentum, we now expect adjusted net earnings per diluted share(2) to be in the range of $11.90 to $12.10.
