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Jun 30, 2024

Stryker Q2 2024 Earnings Report

Reported strong organic sales growth and remained committed to margin expansion goals.

Key Takeaways

Stryker reported a strong second quarter in 2024, with net sales increasing by 8.5% to $5.4 billion and organic net sales growing by 9.0%. The company's reported EPS increased by 10.9% to $2.14, while adjusted EPS increased by 10.6% to $2.81. Stryker is raising its full-year guidance for organic net sales growth to 9.0% to 10.0% and adjusted net earnings per diluted share to $11.90 to $12.10.

Net sales increased 8.5% to $5.4 billion.

Organic net sales increased 9.0%.

Reported EPS increased 10.9% to $2.14.

Adjusted EPS increased 10.6% to $2.81.

Total Revenue
$5.42B
Previous year: $5B
+8.5%
EPS
$2.81
Previous year: $2.54
+10.6%
Organic Net Sales Growth
9%
Previous year: 11.9%
-24.4%
Gross Profit
$3.42B
Previous year: $3.18B
+7.4%
Cash and Equivalents
$1.87B
Previous year: $1.4B
+33.8%
Free Cash Flow
$481M
Previous year: $536M
-10.3%
Total Assets
$39.1B
Previous year: $37.4B
+4.6%

Stryker

Stryker

Stryker Revenue by Geographic Location

Forward Guidance

Stryker now expects full year 2024 organic net sales growth to be in the range of 9.0% to 10.0% with a favorable pricing impact of approximately 0.5%. Given sales momentum, the company now expects adjusted net earnings per diluted share to be in the range of $11.90 to $12.10.

Positive Outlook

  • Expects full year 2024 organic net sales growth to be in the range of 9.0% to 10.0%.
  • Expects a favorable pricing impact of approximately 0.5%.
  • Expects adjusted net earnings per diluted share to be in the range of $11.90 to $12.10.
  • Sustained procedural volumes.
  • Healthy demand for capital products.

Challenges Ahead

  • Anticipate a moderately unfavorable impact on full year net sales if foreign exchange rates hold near current levels.
  • Expect adjusted net earnings per diluted share will be negatively impacted in the range of $0.10 to $0.15 due to foreign exchange rates.
  • Weakening of economic conditions could adversely affect the level of demand.
  • Geopolitical risks could lead to increased market volatility.
  • Pricing pressures generally, including cost-containment measures, could adversely affect the price of or demand.

Revenue & Expenses

Visualization of income flow from segment revenue to net income