UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-13149 Michigan (State of incorporation) 1941 Stryker WayPortage, | --- | --- | |-------|--------------------------------------------| | | 38-1239739 | | | (I.R.S. Emplo ...

Financial Data and Key Metrics - The company delivered robust organic sales growth of 11.5% in Q3 2024, with strong double-digit growth in MedSurg and Neurotechnology, and nearly 10% growth in Orthopedics and Spine [6] - Adjusted quarterly EPS was $2.87, reflecting 16.7% growth compared to Q3 2023 [9] - Full-year 2024 organic sales growth guidance was narrowed to 9.5% to 10%, with adjusted EPS expected to be $12 to $12.10 [9] - The company achieved a 100 basis points margin expansion in 2024 and remains committed to 200 basis points of margin expansion by the end of 2025 [10] Business Line Performance - MedSurg and Neurotechnology saw constant currency sales growth of 12.9% and organic sales growth of 12.7%, driven by strong demand in surgical technologies, endoscopy, and medical businesses [19][20][21] - Orthopedics and Spine reported constant currency sales growth of 10.8% and organic growth of 9.7%, with strong performances in hips, knees, and trauma/extremities businesses [24][25] - The U.S. knee business grew 8.4% organically, driven by robotic-assisted knee procedures and Mako installations, while the U.S. hip business grew 10.9% organically [24][25] Market Performance - Growth was balanced between the U.S. and international markets, with both regions rising double digits organically [7] - International organic sales growth was 11.7%, driven by strong performances in Canada, the UK, Australia, New Zealand, Japan, and emerging markets [18][23] - The company completed several acquisitions, including Care.ai, NICO Corporation, and Vertos Medical, which are expected to contribute approximately $300 million to sales in 2025 [8][15] Strategic Direction and Industry Competition - The company remains committed to growth through acquisitions, with a strong deal pipeline and healthy financial capacity [9] - The company is focused on product innovation, healthy procedure volumes, and commercial execution to drive growth [10] - The Mako robotic platform continues to gain traction, with record Q3 installations and high utilization rates globally [12] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong demand for capital products and procedural volumes, with expectations of sustained momentum through the end of 2024 [11][12] - The company is on track to achieve its margin expansion goals, driven by pricing initiatives, cost management, and operational efficiencies [10][26] - Management expressed confidence in the sustainability of double-digit growth in the medical business, driven by innovation and strong leadership [34] Other Important Information - The company ended Q3 with approximately $4.7 billion in cash, marketable securities, and short-term investments, with total debt of $15.5 billion [29] - Year-to-date cash from operations was $2.3 billion, an increase of $120 million from 2023, driven by higher earnings and improvements in inventory and accounts payable [30] Q&A Session Summary Question: Medical Business Growth Sustainability - The medical business has been the company's highest-growing division over the past five years, driven by innovation in products like ProCuity, Wireless Stretchers, and LIFEPAK 35 [34] - Management expects double-digit growth in the medical division to continue, although not necessarily at 18% every quarter [34] Question: Impact of Hurricanes on Q4 Guidance - Management does not expect significant disruptions from hurricanes in Q4 and aims to finish at the high end of the 9.5% to 10% organic growth guidance [36] Question: 2025 Growth and Margin Expansion - The company is committed to 100 basis points of operating margin expansion in 2025, driven by cost management, pricing initiatives, and operational efficiencies [39][41] - Management expects strong momentum to continue into 2025, with further details to be provided in January [39] Question: Mako Utilization and Growth - Mako installations and utilization rates remain strong globally, with record Q3 installations and high utilization rates driving growth in hips and knees businesses [12][79] - The company expects continued growth in Mako utilization, particularly in international markets like Japan [121] Question: Pricing Trends and Sustainability - The company achieved positive pricing growth in Q3, with a 1.2% favorable impact, driven by pricing initiatives in both U.S. and international markets [17][126] - Management expects pricing trends to remain favorable, with continued focus on contract negotiations and pricing strategies [126] Question: M&A Strategy and Impact - The company completed seven acquisitions in 2024, investing approximately $1.6 billion, with expected contributions of $300 million to sales in 2025 [15][71] - Management remains active on the M&A front, with a strong pipeline of deals and significant financial capacity [72] Question: Spine and Shoulder Robotics - Early feedback on Mako Spine and Copilot has been positive, with both products performing as expected in initial cases [53][54] - Management is optimistic about the potential of Mako Shoulder, which is on track to launch at the end of 2024 [14][108] Question: International Market Opportunities - The company sees significant growth opportunities in international markets, particularly in MedSurg and Neurotechnology, with a focus on expanding sales forces and product penetration [102][104] Question: Cementless Knees and Hips - The company has a strong position in cementless knees, with long-term data supporting the success of its cementless offerings [116] - Management expects continued growth in cementless hips, driven by the success of the Insignia stem and Mako robotic platform [119][120] Question: Orthopedics Market Share and Growth - The company continues to gain market share in orthopedics, driven by the Mako platform, product innovation, and strong sales execution [130][131] - Management expects sustained growth in orthopedics, particularly in trauma and extremities, with strong performances in core trauma and biologics [82][83]

For the quarter ended September 2024, Stryker (SYK) reported revenue of $5.49 billion, up 11.9% over the same period last year. EPS came in at $2.87, compared to $2.46 in the year-ago quarter. The reported revenue represents a surprise of +2.31% over the Zacks Consensus Estimate of $5.37 billion. With the consensus EPS estimate being $2.78, the EPS surprise was +3.24%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Stryker (SYK) came out with quarterly earnings of $2.87 per share, beating the Zacks Consensus Estimate of $2.78 per share. This compares to earnings of $2.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.24%. A quarter ago, it was expected that this medical device maker would post earnings of $2.79 per share when it actually produced earnings of $2.81, delivering a surprise of 0.72%.Over the last four quarters, the compan ...

Exhibit 99.1 STRYKER REPORTS THIRD QUARTER 2024 OPERATING RESULTS Portage, Michigan - October 29, 2024 - Stryker (NYSE:SYK) reported operating results for the third quarter of 2024: Third Quarter Results • Reported net sales increased 11.9% to $5.5 billion • Organic net sales increased 11.5% • Reported operating income margin of 19.7% • Adjusted operating income margin increased 130 bps to 24.7% • Reported EPS increased 20.0% to $2.16 • Adjusted EPS increased 16.7% to $2.87 (1) (1) Third Quarter Net Sales G ...

Stryker Corporation (SYK) is scheduled to release third-quarter 2024 results on Oct. 29, after market close. In the last reported quarter, the company delivered an earnings surprise of 6.38%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Q3 EstimatesThe Zacks Consensus Estimate for earnings is pegged at $2.78 per share, indicating an increase of 13% year over year.The consensus mark for revenues is pinned at $5.37 billion, implying growth of 9.4% from the prior-year reported figure ...

Wall Street analysts expect Stryker (SYK) to post quarterly earnings of $2.78 per share in its upcoming report, which indicates a year-over-year increase of 13%. Revenues are expected to be $5.37 billion, up 9.4% from the year-ago quarter.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Ahead of a company's earnings disclosure, it is cr ...

I've written about investing for Seeking Alpha since 2015 and for Sure Dividend since 2018. I focus primarily on owning shares of companies that have demonstrated long histories of dividend growth. These types of companies have largely proven successful at raising dividends through multiple recessionary periods, a sign that their business models are strong enough to withstand a downturn in the economy. We are long: Energy: CVX Finance: JPM AFL MA V TDIndustrials: LMT MMM HON CMI GD RTX CAT SWK UPSTeleco: T ...

Looking for a company with steady earnings growth and a share price that has outpaced the S&P 500 over the past decade? Stryker Corporation (NYSE: SYK ) would certainly be worth a look: Robert F. Abbott has been investing his family's accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdrie, Alberta, Canad ...

Stryker Today SYK Stryker $353.96 +3.17 (+0.90%) 52-Week Range $249.98 ▼ $374.63 Dividend Yield 0.90% P/E Ratio 40.41 Price Target $379.37 Add to Watchlist Stryker NYSE: SYK is a medical device company that has risen to become the third-largest U.S. firm in the healthcare equipment and supplies industry. The company has often acquired other firms to boost its competitiveness and add capabilities. Still, recent months in 2024 have been particularly active for Stryker when it comes to acquisitions. Since the ...