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What Are Stryker’s Key Growth Drivers for 2Q17?

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Overview

Stryker has registered strong revenues and earnings in the last few quarters. As the healthcare industry in the United States is undergoing business model changes, the company has been executing strong growth strategies to maintain its industry leadership amid intense competition from peers such as Abbott Laboratories (ABT), Medtronic (MDT), and Zimmer Biomet Holdings (ZBH). For exposure to SYK, investors can invest in the Vanguard Growth ETF (VUG), which holds ~0.40% of its total holdings in SYK.

Stryker’s core strategies include investment in its innovative product pipeline, enhancing the company’ sales and marketing channels, strategic acquisitions, and expansion across new geographies. For more, read How Are Stryker’s Core Strategies Working Toward Its Growth?

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Key products driving Stryker’s growth

Stryker’s 3D-printed products, MAKO robots, and its foot and ankle portfolio are the major products that drove the company’s revenues in 1Q17. Stryker installed 18 robots around the globe in 1Q17. The company has been expanding its 3D titanium product portfolio in the recent quarters, which is spurring growth.

MedSurg registered strong growth

MedSurg, which constituted around 44.2% of Stryker’s total sales, was the highest growth segment for the company in 1Q17. It reported constant currency year-over-year sales growth of ~32%. The organic sales growth was reported to be around 15.7%. All the segments of the MedSurg division reported solid growth with the highest growth of around 9.6% in its US instruments segment. Neptune Management system continued to witness momentum. The medical division was driven by its core beds structure and power cot products. The division registered organic growth of around 6.4%.

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