Q2 2024 Stryker Corp Earnings Call Transcript
Key Points
- Stryker Corp (SYK) delivered strong organic growth sales of 9% in Q2 2024, with high single-digit growth across multiple segments including medsurg, neurotechnology, orthopedics, and spine.
- International organic sales growth accelerated to 8.9%, with notable strength in Europe, emerging markets, Australia, New Zealand, and Japan.
- The company completed the acquisitions of Artelon and MOLLI Surgical, enhancing their product portfolio in soft tissue fixation and breast cancer surgery localization, respectively.
- Stryker Corp (SYK) reported a quarterly adjusted EPS of $2.81, reflecting a 10.6% growth compared to Q2 2023, driven by strong sales and margin expansion.
- The company raised its full-year 2024 guidance, now anticipating organic sales growth of 9% to 10% and adjusted EPS of $11.90 to $12.10, reflecting strong capital backlog and innovative product portfolio.
- Foreign currency had a 0.9% unfavorable impact on sales, affecting overall financial performance.
- The neurovascular segment experienced a supply disruption related to flow diversion products, impacting US organic sales growth.
- Despite strong overall performance, the foot and ankle market has been softer, affecting the trauma and extremities business.
- The company faces challenges in maintaining margin targets amidst potential larger M&A deals and the need for significant margin expansion in the second half of the year.
- Free cash flow conversion has trailed in the first half of 2024 due to working capital changes, impacting overall cash flow performance.
Welcome to the second-quarter 2024 Stryker earnings call. My name is Luke, and I'll be your operator for today's call. (Operator Instructions) This conference is being recorded for replay purposes.
Before we begin, I'd like to remind you that discussions during this conference call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company's most recent filings with the SEC. Also, the discussions will include certain non-GAAP financial measures. Reconciliation to the most directly comparable GAAP financial measures can be found in today's press release as an exhibit to Stryker's current report on Form 8-K filed today with the SEC.
I'll now turn over the call to Mr. Kevin Lobo, Chair and Chief Executive Officer. You may proceed, sir.
Welcome to Stryker's second-quarter earnings call. Joining me today are Glenn Boehnlein, Stryker's CFO; and Jason Beach, Vice President of Finance and
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