Stryker reported a slight net sales increase for the first quarter of 2015 and earnings were better than expected.
"We are pleased with our first quarter results, with another strong quarter of nearly 6 percent organic sales growth and disciplined expense management," said Chairman and CEO Kevin Lobo. "We expect this momentum, which is balanced across segments and regions, to continue and are raising the low end of full year sales and earning guidance."
Here are 12 key trends from the report:
1. Consolidated net sales were up 3.2 percent in the quarter compared to the same period last year. Net sales were up 7.1 percent, driven by unit volume increases and product mix changes.
2. There was an unfavorable impact from foreign currency exchange rates that negatively impacted the net sales.
3. The orthopedics net sales hit $1 billion, a 2.4 percent increase in the quarter.
4. The medsurg net sales increased 4.6 percent in the quarter to reach $927 million.
5. The net earnings increased 220 percent to $224 million, which includes charges for the tax impacts related to establishing a European regional headquarters and other tax matters, device recall, acquisition and integration.
6. The company expects constant currency sales growth of 6 percent to 7 percent, including organic sales growth of 5 percent to 6 percent.
7. Stryker expects adjusted diluted net earnings per share to range from $1.15 to $1.20 and $4.95 to $5.10 in the second quarter.
8. The United States sales reached $1.6 billion, up 8.5 percent. International sales dropped 7.4 percent to $706 million.
9. The spine and neurotechnology market was up 2.1 percent to $429 million in sales.
10. The company acquired MAKO more than a year ago, and the MAKO line continues to make progress. Stryker continues to have a "high level of conviction regarding the long-term potential for robotics in orthopedics," according to a Seeking Alpha report.
11. Stryker continues to improve its profile in Western Europe, with eight transatlantic division presidents and regional headquarters in Amsterdam that also includes training and education on Stryker products to strengthen company brand and relationships with physicians and hospitals in Europe.
12. Research and development was 6.4 percent of sales, relatively flat from last quarter.