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Sep 30, 2024

Stryker Q3 2024 Earnings Report

Stryker reported a strong third quarter with significant growth in net sales and earnings.

Key Takeaways

Stryker reported a strong Q3 2024 with net sales increasing by 11.9% to $5.5 billion and organic net sales growing by 11.5%. The company's adjusted EPS increased by 16.7% to $2.87, and they are on track to achieve their adjusted operating margin expansion goals. They now expect adjusted net earnings per diluted share to be in the range of $12.00 to $12.10.

Net sales increased by 11.9% to $5.5 billion.

Organic net sales increased by 11.5%.

Adjusted EPS increased 16.7% to $2.87.

Net earnings increased 20.5% to $834 million.

Total Revenue
$5.49B
Previous year: $4.91B
+11.9%
EPS
$2.87
Previous year: $2.46
+16.7%
Organic Net Sales Growth
11.5%
Previous year: 9.2%
+25.0%
Gross Profit
$3.52B
Previous year: $3.16B
+11.4%
Cash and Equivalents
$3.85B
Previous year: $1.86B
+107.0%
Free Cash Flow
$1.3B
Previous year: $902M
+44.6%
Total Assets
$43.8B
Previous year: $38B
+15.2%

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 9.5% to 10.0% with a favorable pricing impact in the range of 0.5% to 1.0%. They now expect adjusted net earnings per diluted share to be in the range of $12.00 to $12.10.

Positive Outlook

  • Sustained demand for capital products.
  • Healthy procedural volumes.
  • Strong first nine months of the year.
  • Strong sales momentum going into the fourth quarter.
  • Expect full year 2024 organic net sales growth to be in the range of 9.5% to 10.0%

Challenges Ahead

  • Slightly unfavorable impact on full year net sales due to foreign exchange rates.
  • Adjusted net earnings per diluted share will be negatively impacted by approximately $0.10 due to foreign exchange rates.
  • Weakening of economic conditions.
  • Geopolitical risks, including from international conflicts and elections in the United States and other countries.
  • Pricing pressures generally, including cost-containment measures

Revenue & Expenses

Visualization of income flow from segment revenue to net income