Stryker reported third quarter financials, attributing success to the company's diversification.
"The strength of our diversified model was evident again in the third quarter as organic sales growth accelerated to 8 percent," said Chairman and CEO Kevin A. Lobo. Here are 10 things to know about the Stryker's third quarter:
1. Stryker reported consolidated net sales at $2.4 billion, which is 11.1 percent growth over the same period last year. Net sales grew 10.2 percent due to the increased unit volume and changes in product mix. There was also 2.4 percent growth attributable to acquisitions.
2. Net sales were unfavorably impacted 2.3 percent due to price changes and 0.2 percent for foreign currency exchange rates.
3. Neurotechnology and spine net sales reached $432 million, a 6.5 percent increase as reported and 6.9 percent increase in constant currency. Spine sales exclusively were $186 million, only slightly higher than the $183 million reported in the same period last year.
4. In the third quarter, the company launched European headquarters, which Mr. Lobo expects to strengthen Stryker's business in the region and provide strong financial benefits, including a $2 billion cash repatriation planned in the second half of 2015.
5. Knee sales were up 6.1 percent for the third quarter, reaching $335 million. Hip sales were up 4.1 percent to $316 million.
6. Net earnings decreased 44.7 percent in the third quarter, only reaching $57 million. The reported net earnings include charges from the Rejuvenate, ABG II and Neptune recalls as well as tax impacts related to the European regional headquarters establishment. The company also reported a planned cash repatriation, acquisition and integration- related charges.
7. Full year organic sales growth is expected to be 5 percent to 6 percent. However, the company expects full-year adjusted diluted net earnings per share to be at the lower end of the previously disclosed $4.75 to $4.80 range.
8. The company reported $1.15 EPS, beating expectations by $0.01, according to a Sleek Monkey report.
9. On the day Stryker's financial report was released, the company traded down 0.20 percent with a trading volume of 2.2 million shares. Stryker has a market cap of $30 billion.
10. The company's reconstructive net sales were up 8.5 percent to $1 billion. MedSurg net sales grew 16.3 percent to $936 million.