Stryker Corp (SYK) Reports 9.6% Increase in Q3 2023 Net Sales
Stryker Corp (NYSE:SYK) reported a 9.6% increase in Q3 2023 net sales, reaching $4.9 billion.
Adjusted EPS increased by 16.0% to $2.46, while reported EPS decreased by 15.9% to $1.80.
Reported operating income margin stood at 19.0%, while adjusted operating income margin increased by 110 basis points to 23.4%.
Organic net sales increased by 9.2% in the quarter.
On November 2, 2023, Stryker Corp (NYSE:SYK) released its Q3 2023 earnings report. The company reported a 9.6% increase in net sales, reaching $4.9 billion. Despite this, reported EPS decreased by 15.9% to $1.80. However, the adjusted EPS saw a 16.0% increase, reaching $2.46.
Financial Performance
According to the report, Stryker Corp (NYSE:SYK)'s reported operating income margin was 19.0%. The adjusted operating income margin increased by 110 basis points to 23.4%. Organic net sales increased by 9.2% in the quarter, including an 8.9% increase from unit volume and a 0.3% increase from higher prices.
MedSurg and Neurotechnology net sales increased by 10.5% in the quarter, reaching $2.9 billion. Organic net sales in this segment increased by 10.1%, including an 8.7% increase from unit volume and a 1.4% increase from higher prices. Orthopaedics and Spine net sales increased by 8.4% in the quarter, reaching $2.1 billion. Organic net sales in this segment increased by 8.0%, including a 9.1% increase from unit volume partially offset by a 1.1% decrease from lower prices.
Earnings Analysis
Reported net earnings of $692 million decreased by 15.2% in the quarter. Reported net earnings per diluted share of $1.80 decreased by 15.9% in the quarter. Reported gross profit margin and reported operating income margin were 64.3% and 19.0% in the quarter, respectively.
Excluding certain items, adjusted gross profit margin was 64.7% in the quarter, and adjusted operating income margin was 23.4% in the quarter. Adjusted net earnings of $944 million increased by 16.5% in the quarter. Adjusted net earnings per diluted share of $2.46 increased by 16.0% in the quarter.
2023 Outlook
Considering the year-to-date results and positive procedural trends, Stryker Corp (NYSE:SYK) expects full year 2023 organic net sales growth to be in the range of 10.0% to 10.5%. The company anticipates net sales will be unfavorably impacted by approximately 0.6% and adjusted net earnings per diluted share will be unfavorably impacted by $0.10 to $0.15 for the full year, both of which are included in the guidance. Based on the performance in the first nine months of the year, the company now expects adjusted net earnings per diluted share to be in the range of $10.35 to $10.45.
Explore the complete 8-K earnings release (here) from Stryker Corp for further details.
This article first appeared on GuruFocus.
