Stryker stock remained flat late Tuesday after the medical giant beat Wall Street’s second-quarter views and called for a return to normalcy in the latter half of 2021.
The company raised its full-year outlook and now expects net sales to grow 9%-10% organically over pre-pandemic levels. Stryker (SYK) also guided to adjusted profit of $9.25-$9.40 per share, above views for $9.19 per share. Analysts also called for full-year sales of $17.17 billion.
The guidance assumes an ongoing recovery in key geographies and elective procedures. At the height of the Covid pandemic in 2020, patients delayed elective procedures. Now, companies like Stryker and Intuitive Surgical (ISRG) say that trend is making a 180-degree turn.
“We delivered strong financial results in the second quarter,” Stryker Chief Executive Kevin Lobo said in a written statement. “Business momentum continues to build as the pandemic moderates and the integration of Wright Medical is pacing ahead of plan. Our positive outlook is reflected in our raised guidance.”
Stryker Stock Muted Despite Quarterly Beat
During the first quarter, Stryker earned $2.25 per share on $4.29 billion in sales. Earnings beat Stryker stock analysts’ forecast for $2.14 a share and grew 246% year over year. Sales increased 55% and easily topped expectations for $4.15 billion.
On a strict as-reported basis, the strongest growth came from Stryker’s orthopedics business which popped 82.3% over 2020 levels. Neurotechnology/spine and medical-surgical sales soared 66.9% and 32.3%. Compared with pre-pandemic 2019 levels, orthopedic sales grew almost 28%, leading the group.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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