Early Access

10-QPeriod: Q1 FY2024

STRYKER CORP Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 1, 2024For Securities:SYK

Summary

Stryker Corporation reported a strong first quarter for 2024, demonstrating robust top-line growth and improved profitability. Net sales increased by 9.7% year-over-year to $5.24 billion, driven by solid performance in both the MedSurg and Neurotechnology and Orthopaedics and Spine segments. This growth was primarily attributed to increased unit volume across all businesses, with pricing also contributing positively. The company also achieved a significant increase in net earnings, rising 33.1% to $788 million, with diluted EPS growing to $2.05 from $1.54 in the prior year period. The company's operational efficiency improved, with gross profit margin increasing to 63.6% and operating income margin expanding to 18.5%. This was supported by favorable volume dynamics and easing inflationary pressures on manufacturing costs. Stryker also made a strategic acquisition of SERF SAS for $246 million, strengthening its Joint Replacement business. Despite ongoing macroeconomic uncertainties, including inflation and higher interest rates, Stryker's financial position remains strong, with healthy liquidity and a positive outlook for continued growth.

Financial Highlights

51 data points
Beta

Revenue

$5.24B

0.6% Gross Margin

Net Income

$788.00M

0.2% Net Margin

EPS (Diluted)

$2.05

Total Assets

$39.40B

Cash & Equivalents

$2.33B

Free Cash Flow

$37.00M

Financial Statements
Beta
Revenue$5.24B
Cost of Revenue$1.91B
Gross Profit$3.33B
R&D Expenses$368.00M
SG&A Expenses$1.84B
Operating Expenses$2.36B
Operating Income$972.00M
Net Income$788.00M
EPS (Basic)$2.07
EPS (Diluted)$2.05
Shares Outstanding (Basic)380.40M
Shares Outstanding (Diluted)385.10M

Key Highlights

  • 1Consolidated net sales increased 9.7% to $5.24 billion in Q1 2024 compared to $4.78 billion in Q1 2023.
  • 2Net earnings surged by 33.1% to $788 million, with diluted EPS increasing to $2.05 from $1.54 year-over-year.
  • 3Gross profit margin improved to 63.6% from 63.1% in the prior year period, driven by favorable volumes.
  • 4Operating income margin expanded to 18.5% from 15.4% in Q1 2023, reflecting improved operational efficiency.
  • 5The company acquired SERF SAS for $246 million, enhancing its Orthopaedics and Spine segment, specifically in Joint Replacement.
  • 6MedSurg and Neurotechnology segment sales grew 11.5% (12.0% in constant currency), while Orthopaedics and Spine segment sales grew 7.5% (8.0% in constant currency).
  • 7Cash provided by operating activities was $204 million, a decrease from $445 million in the prior year, mainly due to working capital timing.

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