Stryker reported a 6.1 percent net sales growth for the second quarter of 2017, and raised full-year guidance due to strong performance.
Here are seven things to know:
1. Stryker net sales reached $3 billion in the second quarter, a 6.1 percent increase over the same period last year. U.S. sales hit $2.2 billion, up 2.4 percent, while international sales were $811 million, a 2.7 percent growth over last year.
2. Orthopedics net sales hit $1.1 billion, up 5.5 percent over the same period last year. Here is the breakdown by segment:
• Knee: $389 million, up 5 percent
• Hip: $322 million, down 0.3 percent
• Trauma and extremities: $351 million, up 7 percent
• Other: $79 million, up 32 percent
3. Stryker's MedSurg net sales were $1.3 million. Here is the breakdown by segment:
• Instruments: $392 million, up 4.1 percent
• Endoscopy: $406 million, up 13.9 percent
• Sustainability: $64 million, up 10 percent
4. Neurotechnology and spine net sales were $500 million. Spine sales hit $183 million, a 2.9 percent decrease, and neurotechnology increased 13.9 percent to $352 million.
"We have some challenges [in spine] … the market overall looks to be challenged certainly in this quarter," said Katherine A. Owen during Stryker's quarterly conference call, according to Seeking Alpha's transcript. "We've had some Stryker issues as we work through some of the supply challenges, but on the positive front, those do appear to be moderating for us. And we're also seeing really strong demand, but we are capacity constrained for our Tritanium products."
The company has several projects in research and development, and as a result expects to see improvement long term.
5. Net earnings increased 2.9 percent to $291 million in the quarter.
6. Stryker now expects 2017 organic net sales growth between 6.5 percent and 7 percent.
7. In the second quarter, Stryker reported 26 Mako robots were installed globally, a 5 percent increase over last year. There were 20 new systems installed in the U.S., and the company expects to "largely complete all U.S. system upgrades during 2018." There are more than 400 surgeons trained on the Mako system to date.