Stryker $SYK reported top line sales of $6.4Bn and bottom line adjusted EPS of $4.01. FY'24 top line and bottom line performance totaled to $22.6Bn in sales and an adjusted EPS of $12.19. $SYK shares are currently trading down 1.3% to $390.00 with low trading volume after hours

1/ Organic net sales grew 10.2% for the quarter with an increase in adjusted operating margin by 200 bps to 29.2%. Adjusted gross margin also beat consensus at 65.3% vs 64.8%. Reported growth of the MedSurg & Neurotechnology segment was 10.6% YoY and reported growth of the Orthopaedics segment was 10.8% YoY. Mgmt. presented '25 outlook with strong demand for capital products, organic net sales growth in the range of 8.0-9.0%, and adjusted EPS range of $13.45-$13.70. Mgmt. highlighted their expectations of another year of DD top-line growth in the medical segment, expansion of their robotic technology in surgeries specifically with their Mako brand, and realized integration of their '24 acquisitions by EOY'25. Beats were observed in endoscopy and neurocranial while the other sub-segments dragged behind consensus for MedSurg. Beats across the board for Orthopaedics with the exception of spine severely underperforming consensus. Mgmt. announced a definitive agreement to sell the US spinal implants business to Viscogliosi Brothers LLC, an investment firm that specializes in the neuro-musculoskeletal space. $SYK announced a mgmt. change with CFO Glenn Boehnlein planning to retire and Preston Wells, who was the CFO of the Orthopaedics segment, now assuming the role of CFO on Apr 1 '25.

2/ Questions on the earnings call primarily revolved around progression of the '24 acquisitions and how mgmt. will guide materialization of the recent Inari acquisition, margin and top-line impact of FY'25 organic sales guidance, and commercialization impact of the fastest growing segments. Mgmt. guided simple integration of existing businesses with adding specialized sales' forces to make the most meaningful commercial impact. They reiterated organic sales growth figures. Additionally, mgmt. was asked about the pace of adoption in the robotic shoulder market for the coming 1-3 years to which they commented that Mako Shoulder had strong early surgeon feedback with complex surgeries. They expect strong acceleration in '26 of their newer products with little commercial value for this year.
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