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Mar 31, 2023

Stryker Q1 2023 Earnings Report

Stryker reported strong organic sales growth and increased earnings per share.

Key Takeaways

Stryker's Q1 2023 results showed strong performance with an 11.8% increase in reported net sales to $4.8 billion and a significant 83.3% increase in reported EPS to $1.54. Organic net sales grew by 13.6%, driven by increased unit volume and higher prices. The company has raised its full-year 2023 outlook for organic net sales growth and adjusted net earnings per diluted share.

Reported net sales increased by 11.8% to $4.8 billion.

Organic net sales increased by 13.6%.

Reported EPS increased significantly by 83.3% to $1.54.

Adjusted EPS increased by 8.6% to $2.14.

Total Revenue
$4.78B
Previous year: $4.28B
+11.8%
EPS
$2.14
Previous year: $1.97
+8.6%
Organic Net Sales Growth
13.6%
Previous year: 9.2%
+47.8%
Gross Profit
$3.02B
Previous year: $2.73B
+10.3%
Cash and Equivalents
$1.67B
Previous year: $1.46B
+14.6%
Free Cash Flow
$315M
Previous year: $84M
+275.0%
Total Assets
$36.8B
Previous year: $36.1B
+1.9%

Stryker

Stryker

Stryker Revenue by Geographic Location

Forward Guidance

Stryker expects full year 2023 organic net sales growth to be in the range of 8.0% to 9.0% and adjusted net earnings per diluted share to be in the range of $10.05 to $10.25. Pricing is expected to be relatively neutral for the year. Foreign exchange rates are anticipated to have a modestly unfavorable impact on full year sales and EPS.

Positive Outlook

  • Strong order book for capital equipment.
  • Ongoing procedural recovery.
  • Full year 2023 organic net sales growth expected to be in the range of 8.0% to 9.0%.
  • Adjusted net earnings per diluted share expected to be in the range of $10.05 to $10.25.
  • Pricing expected to be relatively neutral for the year.

Challenges Ahead

  • Foreign exchange rates are anticipated to have a modestly unfavorable impact on full year sales and EPS.
  • Impact being more negative in the first half of the year.
  • Weakening of economic conditions.
  • Legislative and regulatory actions.
  • Inflationary pressures and increased interest rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income