Stryker reported a 7.9 percent sales increase in the third quarter of 2018, in which the company also announced several new acquisitions.
Here are six things to know:
1. The company's net sales jumped 7.9 percent to $3.2 billion for the quarter. In the U.S., sales increased 9.1 percent to $2.3 billion and international sales were up 4.5 percent to $861 million.
2. Stryker experienced large increases in the medsurg and neurotechnology and spine lines during the third quarter. Here is a breakdown of the sales for each business line:
• Orthopedics: $1.1 billion (3.4 percent increase)
• Medsurg: $1.4 billion (8 percent increase)
• Neurotechnology and spine: $628 million (16.7 percent increase)
Within orthopedics, knee sales performed exceptionally well, increasing 7 percent to $395 million. Hips, on the other hand, increased just 1 percent to $316 million. Spine was up 4.3 percent to $193 million, and the neurotechnology line sales jumped 23.2 percent to $435 million.
3. According to Investor's Business Daily, the company met profit expectations, but sales were below projections and the company's stock dropped 3.8 percent after the report. Stryker expects 2018 organic net sales to be on the high end of its 7 percent to 7.5 percent range.
4. In the fourth quarter, the company expects net sales to be negatively impacted by the foreign currency exchange rate.
5. During the third quarter, Stryker acquired Invuity for $190 million and began the process of acquiring K2M, a minimally invasive complex spine device company, for $1.4 billion.
6. During the third quarter of 2018, the company installed 37 Mako robots, including 26 in the U.S., up from 33 installations in the same time period last year. "Over 50 percent of the robots installed in Q3 were in competitive accounts where Stryker either has no market share or share well below our average number," said Vice President of Strategy and Investor Relations Katherine Owen during the company's conference call, as transcribed by Seeking Alpha. The company also reported training 145 surgeons on the MAKO total knee application, which makes 1,350 surgeons trained thus far.