Summary
Stryker Corporation reported net sales of $18.45 billion for the fiscal year ended December 30, 2022, a 7.8% increase from the prior year, or 11.0% in constant currency. The company's performance was driven by robust growth in its MedSurg and Neurotechnology segment, which increased 11.2% (14.1% in constant currency), while the Orthopaedics and Spine segment saw a more modest 3.5% increase (7.0% in constant currency). Despite top-line growth, profitability faced headwinds from inflationary pressures, primarily impacting labor, steel, and transportation costs, as well as electronic component shortages that constrained supply. These factors, coupled with unfavorable foreign exchange rates, led to a decrease in gross profit margin to 62.8% from 64.1% in the prior year. The company also recorded a significant goodwill impairment charge of $216 million related to its Spine business. Net earnings were $2.36 billion, or $6.17 per diluted share, representing an 18.3% increase year-over-year. Excluding certain items, adjusted net earnings per diluted share grew 2.8% to $9.34. Stryker continued its strategic capital allocation by investing $2.56 billion in acquisitions, notably the acquisition of Vocera Communications, Inc., and returning capital to shareholders through $1.05 billion in dividend payments. The company faces ongoing risks including supply chain disruptions, inflationary pressures, and regulatory complexities, particularly with the implementation of new medical device regulations in the EU and UK, and volume-based procurement programs in China.
Financial Highlights
51 data points| Revenue | $18.45B |
| Cost of Revenue | $6.87B |
| Gross Profit | $11.58B |
| R&D Expenses | $1.45B |
| SG&A Expenses | $6.39B |
| Operating Expenses | $8.74B |
| Operating Income | $2.84B |
| Interest Expense | $337.00M |
| Net Income | $2.36B |
| EPS (Basic) | $6.23 |
| EPS (Diluted) | $6.17 |
| Shares Outstanding (Basic) | 378.20M |
| Shares Outstanding (Diluted) | 382.20M |
Key Highlights
- 1Stryker reported net sales of $18.45 billion for 2022, up 7.8% year-over-year (11.0% in constant currency), demonstrating continued revenue growth.
- 2The MedSurg and Neurotechnology segment was the primary growth driver, increasing sales by 11.2% (14.1% in constant currency), while Orthopaedics and Spine grew by 3.5% (7.0% in constant currency).
- 3Gross profit margin declined to 62.8% from 64.1% in 2021 due to inflationary pressures (labor, steel, transportation) and supply chain challenges impacting electronic component availability.
- 4A significant goodwill impairment charge of $216 million was recognized for the Spine business, reflecting market pressures and slower recovery post-pandemic.
- 5Net earnings were $2.36 billion, or $6.17 per diluted share, up 18.3% from the prior year; adjusted diluted EPS grew 2.8% to $9.34.
- 6The company completed the acquisition of Vocera Communications, Inc. for approximately $2.6 billion, strengthening its digital healthcare offerings.
- 7Stryker returned $1.05 billion to shareholders through dividends, and maintained its focus on strategic acquisitions as a key capital allocation priority.