Stryker (SYK) has reported its 3Q17 earnings results. All of its segments—Orthopaedics, MedSurg, and Neurotechnology and Spine—registered solid performance, with reported sales growth of around 5.1%, 6.7%, and 6.9%, respectively, YoY (year-over-year).
Investors seeking exposure to Stryker could consider the iShares Edge MSCI Min Vol USA ETF (USMV), which holds ~1.5% of its total portfolio in SYK.
In 3Q17, Orthopaedics sales came in at ~$1.1 billion, representing YoY sales growth of ~5.1%. On a constant-currency basis, sales growth for the segment was ~4.8%. Its organic sales growth of 4.5% included a ~6.5% boost from an increase in unit volume, which was offset by ~0.4% due to hurricanes and 2% due to pricing. Due to the hurricanes, the company reported a number of canceled implants, which are expected to be rescheduled in the next quarter. Knee implant and trauma and extremity implant sales rose ~4.3% and 9.9% respectively. Stryker is seeing strong momentum in the company’s foot and ankle portfolio, 3D-printed products, and the Triathlon Total Knee and Mako robotic platforms.
Stryker’s MedSurg segment registered sales of $1.3 billion in 3Q17, representing growth of ~6.7% YoY. The constant-currency sales growth for the segment was ~6.2%. Its organic sales growth of 5.6% was due to increased unit volume, offset by ~4.6% due to Sage recall issues and 0.8% due to hurricane-related issues. Acquisitions contributed ~0.6% to segment’s sales growth in the quarter. US organic growth came in at ~11.6%, while international sales rose 7.1%.
Instrument sales growth was driven by the company’s accelerated investment in power tools and continued momentum in its waste management products and Sterishield. Under its instrument division, Stryker recently launched System 8. The company’s endoscopy business division is expected to build momentum with the acquisition of Novadaq Technologies in 3Q17.
Neurotechnology and Spine
In 3Q17, Stryker’s Neurotechnology and Spine segment registered organic growth of ~7%, driven by strong demand for the company’s neurotechnology product portfolio. The company’s spine business continued to experience weakness, which was partially offset by growing momentum seen by its 3D-printed Tritanium products.
Peers Thermo Fisher Scientific (TMO), Baxter International (BAX), and Abbott Laboratories (ABT) have also recently released their 3Q17 results. These companies reported revenue around $5.1 billion, $2.7 billion, and $6.8 billion, respectively. Next, we’ll take a look at the company’s 3Q17 earnings results and margins.