Stryker reported net earnings increased in the third quarter, despite headwinds related to the recall of certain Sage products and a sales slowdown due to hurricane damage.
Here are five things to know:
1. Stryker consolidated net sales increased 6.1 percent to $3 billion in the quarter, including a negative 1.8 percent impact from the Sage product recalls. The company also had temporary ship holds related to hurricanes that led to a 0.6 percent impact on sales.
2. Orthopedic net sales were up 5.1 percent in the third quarter, hitting $1.1 billion. MedSurg net sales reached $1.3 billion, a 6.7 percent increase over the same period last year. Stryker closed the Novadaq Technologies acquisition in the third quarter, and Novadaq is now part of Stryker Endoscopy. The neurotechnology and spine sales reached $500 million, a 6.9 percent increase over the same period last year.
3. Net earnings increased 22.3 percent to $434 million in the quarter. The FDA sent Stryker a warning letter associated with Sage Products oral care in July, and the company issued a voluntary recall as a result. Stryker then discontinued business with its third-party supplier and oral care solutions are now manufactured in-house. The company resumed oral care shipping in October and expects to return to fully supply capacity by the end of the year.
4. The company's third quarter knee sales were up 4.2 percent, reaching $369 million. Hip sales hit $313 million, up 1 percent while trauma and extremities jumped 7.4 percent to $267 million. Spine sales dropped 3.7 percent to $185 million.
5. Stryker expects 2017 organic net sales to increase 6.5 percent to 7 percent for the full year.