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The company announced an adjusted EPS of $2.50, which was $0.14 higher than the analyst consensus of $2.36. Revenue also exceeded expectations, reaching $5.2 billion against a forecast of $5.1 billion.
The company’s net sales saw a significant increase of 9.7% compared to the same period last year, with organic net sales growing by 10.0%. Kevin A. Lobo, Stryker’s CEO, attributed the strong performance to a continuation of the momentum from 2023, highlighting a 10% organic sales growth and expressing confidence in the company’s prospects for sales growth and adjusted earnings in 2024.
Despite the earnings beat, Stryker’s stock experienced a 2.4% decline, which did not align with a specific driver but may reflect market reactions to broader concerns or unmet investor expectations.
For the full year 2024, Stryker has updated its guidance for organic net sales growth to be between 8.5% and 9.5%, with a neutral pricing impact expected. Adjusted EPS is projected to range from $11.85 to $12.05, aligning with the lower end of analyst expectations.
The company anticipates foreign exchange rates to have a moderate unfavorable impact on net sales, particularly in the first half of the year, and a higher negative impact on adjusted EPS at the upper end of the previously guided range of $0.05 to $0.10.
The first quarter’s performance was driven by a 10.2% increase in MedSurg and Neurotechnology net sales and a 7.5% rise in Orthopaedics and Spine net sales. Lobo praised the company’s execution and expressed confidence in Stryker’s ability to drive strong adjusted earnings growth moving forward.
Investors and analysts will continue to monitor Stryker’s performance as it navigates the dynamic healthcare market, with particular attention to the company’s ability to maintain its growth trajectory and manage the impact of foreign exchange rates on its financial outcomes.
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