Summary
Stryker Corporation's 2019 Form 10-K report details a year of robust growth and strategic investments. The company achieved a reported net sales increase of 9.4%, reaching $14.88 billion, driven by strong performance across its Orthopaedics, MedSurg, and Neurotechnology and Spine segments. Excluding the impact of acquisitions and currency fluctuations, sales grew by 9.0% on a constant currency basis, primarily due to increased unit volume. Financially, Stryker reported net earnings of $2.08 billion, or $5.48 per diluted share. However, excluding certain non-recurring items and acquisition-related costs, adjusted net earnings grew by 13.0% to $3.14 billion. The company continued its capital allocation strategy, investing $802 million in acquisitions, paying $778 million in dividends, and repurchasing $307 million in stock. A significant development was the announcement of a definitive agreement to acquire Wright Medical Group N.V. for approximately $5.4 billion, expected to close in the second half of 2020, which will bolster Stryker's extremities and biologics offerings.
Financial Highlights
52 data points| Revenue | $14.88B |
| Cost of Revenue | $5.19B |
| Gross Profit | $9.70B |
| R&D Expenses | $971.00M |
| SG&A Expenses | $5.36B |
| Operating Expenses | $6.98B |
| Operating Income | $2.71B |
| Interest Expense | $287.00M |
| Net Income | $2.08B |
| EPS (Basic) | $5.57 |
| EPS (Diluted) | $5.48 |
| Shares Outstanding (Basic) | 374.00M |
| Shares Outstanding (Diluted) | 379.90M |
Key Highlights
- 1Stryker reported net sales of $14.88 billion in 2019, a 9.4% increase year-over-year, with constant currency sales growth of 10.7%.
- 2The company's three key segments - Orthopaedics, MedSurg, and Neurotechnology and Spine - all demonstrated significant sales growth, with Neurotechnology and Spine showing the strongest performance at 19.2%.
- 3Net earnings for 2019 were $2.08 billion, or $5.48 per diluted share, though adjusted net earnings (excluding certain items) saw a 13.0% increase.
- 4Stryker announced its intent to acquire Wright Medical Group N.V. for approximately $5.4 billion, a strategic move to expand its extremities and biologics portfolio within the Orthopaedics segment.
- 5The company continued its capital allocation priorities, investing $802 million in acquisitions, returning $778 million to shareholders via dividends, and repurchasing $307 million of its own stock.
- 6Recall charges for the year were $192 million, primarily related to previously disclosed hip stem and femoral head recalls, a significant increase from $23 million in 2018.
- 7Stryker's strong cash generation enabled continued investment in R&D (6.5% of net sales), supporting future innovation and product development.