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Jun 30, 2023

Stryker Q2 2023 Earnings Report

Stryker reported strong organic sales growth and margin expansion in Q2 2023.

Key Takeaways

Stryker reported a strong second quarter in 2023, with net sales increasing by 11.2% to $5.0 billion and organic net sales increasing by 11.9%. The company is back on its margin expansion pathway and its supercycle of innovation is progressing well. Adjusted EPS increased 12.9% to $2.54.

Net sales increased by 11.2% to $5.0 billion.

Organic net sales increased by 11.9%.

Reported EPS increased 12.2% to $1.93.

Adjusted EPS increased 12.9% to $2.54.

Total Revenue
$5B
Previous year: $4.49B
+11.2%
EPS
$2.54
Previous year: $2.25
+12.9%
Organic Net Sales Growth
11.9%
Previous year: 6.1%
+95.1%
Gross Profit
$3.18B
Previous year: $2.83B
+12.6%
Cash and Equivalents
$1.4B
Previous year: $1.04B
+34.2%
Free Cash Flow
$536M
Previous year: $386M
+38.9%
Total Assets
$37.4B
Previous year: $36B
+3.8%

Stryker

Stryker

Stryker Revenue by Geographic Location

Forward Guidance

Stryker expects full year 2023 organic net sales growth to be in the range of 9.5% to 10.5%, including slightly positive pricing for the year. Adjusted net earnings per diluted share are expected to be in the range of $10.25 to $10.45.

Positive Outlook

  • Strong order book for capital equipment
  • Continued positive procedural trends

Challenges Ahead

  • Foreign exchange rates may unfavorably impact net sales by 0.3% for the full year.
  • Adjusted net earnings per diluted share will be unfavorably impacted by $0.05 to $0.10 for the full year due to foreign exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income