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Jun 30, 2021

Stryker Q2 2021 Earnings Report

Stryker's financial performance surged in Q2 2021, driven by strong sales growth and effective integration of Wright Medical.

Key Takeaways

Stryker reported a significant increase in net sales and earnings for the second quarter of 2021. Net sales increased by 55.4% compared to 2020 and 17.6% compared to 2019, reaching $4.3 billion. The company's strong performance was attributed to the moderation of the pandemic and the successful integration of Wright Medical.

Net sales increased by 55.4% compared to 2020 and 17.6% compared to 2019, reaching $4.3 billion.

Organic net sales increased by 42.9% from 2020 and 9.3% from 2019.

Reported EPS was $1.55, while adjusted EPS reached $2.25.

The company raised its full-year guidance, expecting organic net sales growth of 9% to 10% from 2019 and adjusted net earnings per diluted share in the range of $9.25 to $9.40.

Total Revenue
$4.29B
Previous year: $2.76B
+55.4%
EPS
$2.25
Previous year: $0.64
+251.6%
Organic Net Sales Growth
42.9%
Previous year: -24%
-278.8%
Gross Profit
$2.77B
Previous year: $1.55B
+79.1%
Cash and Equivalents
$2.24B
Previous year: $6.54B
-65.7%
Free Cash Flow
$772M
Previous year: $511M
+51.1%
Total Assets
$33.7B
Previous year: $31.5B
+7.0%

Stryker

Stryker

Stryker Revenue by Segment

Stryker Revenue by Geographic Location

Forward Guidance

Stryker expects 2021 organic net sales growth to be in the range of 9% to 10% from 2019, and now expects adjusted net earnings per diluted share to be in the range of $9.25 to $9.40.

Positive Outlook

  • Ongoing recovery in key geographies.
  • More normalized elective procedure levels continuing into the second half of 2021.
  • Full year impact of the acquisition of Wright Medical.
  • EPS will be positively impacted by approximately $0.10 for the full year if foreign currency exchange rates hold near current levels.
  • Strong financial results in the second quarter.

Challenges Ahead

  • Continued unfavorable price reductions of approximately 1% in 2021.
  • Impact on operations and financial results of the COVID-19 pandemic and any related policies and actions by governments or other third parties.
  • Unexpected liabilities, costs, charges or expenses in connection with the acquisition of Wright.
  • Weakening of economic conditions that could adversely affect the level of demand for products.
  • Potential supply disruptions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income