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Jun 30, 2022

Stryker Q2 2022 Earnings Report

Stryker's Q2 2022 results showed sales growth but earnings were pressured by foreign currency and inflation.

Key Takeaways

Stryker reported a 4.6% increase in net sales to $4.5 billion, with organic net sales increasing by 6.1%. Reported EPS increased by 11.0% to $1.72, while adjusted EPS was $2.25. The company is confident in its full year outlook for revenue.

Reported net sales increased 4.6% to $4.5 billion.

Organic net sales increased 6.1%.

Reported EPS increased 11.0% to $1.72.

Adjusted EPS of $2.25 was in line with 2021.

Total Revenue
$4.49B
Previous year: $4.29B
+4.6%
EPS
$2.25
Previous year: $2.25
+0.0%
Organic Net Sales Growth
6.1%
Previous year: 42.9%
-85.8%
Gross Profit
$2.83B
Previous year: $2.77B
+1.9%
Cash and Equivalents
$1.04B
Previous year: $2.24B
-53.4%
Free Cash Flow
$386M
Previous year: $772M
-50.0%
Total Assets
$36B
Previous year: $33.7B
+6.9%

Stryker

Stryker

Stryker Revenue by Geographic Location

Forward Guidance

Stryker expects full year 2022 organic net sales growth to be in the range of 8% to 9%. Adjusted net earnings per diluted share are expected to be in the range of $9.30 to $9.50 per share.

Positive Outlook

  • Strong order book for capital equipment
  • Sales momentum in implant businesses
  • Full year 2022 organic net sales growth expected to be in the range of 8% to 9%.
  • Continued financial discipline
  • Increased sales guidance

Challenges Ahead

  • Continued supply chain challenges
  • Inflationary environment
  • Foreign currency exchange rates will adversely impact net sales by approximately 2% to 3%
  • Adjusted net earnings per diluted share will be adversely impacted by approximately $0.25 to $0.30
  • Anticipated future impact of foreign currency

Revenue & Expenses

Visualization of income flow from segment revenue to net income