Advertisement
New Zealand markets open in 2 hours 59 minutes

  • NZX 50

    11,525.88
    -92.21 (-0.79%)
     

  • NZD/USD

    0.6123
    +0.0081 (+1.35%)
     

  • ALL ORDS

    8,020.90
    +25.20 (+0.32%)
     

  • OIL

    78.75
    +0.73 (+0.94%)
     

  • GOLD

    2,390.70
    +30.80 (+1.31%)
     

Stryker Corp (SYK) Q1 2024 Earnings Call Transcript Highlights: Robust Growth and Optimistic ...

GuruFocus Research
·3-min read

  • Organic Sales Growth: 10% in Q1 2024, with strong performance across MedSurg, Neurotechnology, Orthopaedics, and Spine.

  • Adjusted EPS: $2.50, up 16.8% from Q1 2023.

  • Full Year Organic Sales Growth Forecast: Increased to 8.5% to 9.5%.

  • Adjusted EPS Guidance for Full Year: Raised to $11.85 to $12.05 per share.

  • U.S. Organic Sales Growth: 11.3%.

  • International Organic Sales Growth: 6.6%.

  • Adjusted Gross Margin: 63.6%, an improvement of 50 basis points from Q1 2023.

  • Adjusted Operating Margin: 21.9% of sales, up 80 basis points from Q1 2023.

  • Cash and Marketable Securities: $2.4 billion at the end of Q1 2024.

  • Total Debt: Approximately $13 billion.

  • Cash from Operations: $204 million year-to-date.

Release Date: April 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q & A Highlights

Q: Can you discuss any changes in the environment for capital and procedure volume growth? A: Kevin A. Lobo, Chairman, CEO & President of Stryker Corporation, noted that procedure volumes and capital equipment demand remain robust, similar to levels seen in 2024, with a strong capital order book providing confidence to raise the full-year organic sales growth forecast.

ADVERTISEMENT

Q: How has the Spine business performed this quarter, and what are the drivers? A: Kevin A. Lobo explained that the Spine business's strong performance is largely due to the Interventional Spine business and enabling technologies like the Q Guidance System. He noted that the competitive merger has not significantly impacted the business yet.

Q: Could you provide details on the EPS raise and its contributing factors? A: Glenn S. Boehnlein, VP & CFO, attributed the EPS increase primarily to robust top-line growth and operational efficiencies, rather than changes in other income or tax rates, which remained consistent with previous guidance.

Q: What is your perspective on the potential impact of da Vinci 5 on your Endoscopy business? A: Kevin A. Lobo expressed confidence in the strength and differentiation of Stryker's endoscopy solutions, emphasizing minimal business overlap with Intuitive's offerings and the unique capabilities of Stryker's products in fluorescence imaging.

Q: Can you elaborate on the guidance for top-line growth, considering the strong performance this quarter? A: Kevin A. Lobo, while acknowledging the strong current performance, emphasized a cautious approach due to potential market uncertainties, suggesting that the current guidance raise is appropriate at this time.

Q: How are international sales performing, particularly in Europe compared to high-growth markets like Japan and China? A: Kevin A. Lobo highlighted that Europe continues to be a growth engine, though it experienced softer performance in Q1 due to tough comparables from the previous year. He remains optimistic about the growth trajectory in Europe and other international markets.

These insights from Stryker's Q1 2024 earnings call reflect the company's strong performance and strategic responses to dynamic market conditions, underpinned by robust product demand and innovation.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.