July 30 (Reuters) – U.S. medical device maker Stryker on Thursday beat Wall Street estimates for second-quarter results, aided by strong demand for its implants and devices used in complex procedures ranging from spinal to orthopedic surgeries.
However, the company’s shares fell 9% in extended trading after the Michigan-based firm missed analysts’ estimates for medical surgery and neurotechnology sales in the quarter, its largest revenue-generating segment.
Here are the details:
• The company, which makes joint replacements and medical implants used to repair broken bones, narrowed its forecast for adjusted annual profit to between $14.95 and $15.10 per share, from its prior range of $14.90 to $15.10 per share.
• Stryker’s rivals in the orthopedics market include Zimmer Biomet and healthcare conglomerate Johnson & Johnson, where the companies jostle for market share across multiple segments such as hip and knee replacements, trauma and sports medicine.
• Sales at Stryker’s medical surgery and neurotechnology unit, rose 9.7% to $3.6 billion in the reported quarter, but missed analysts’ estimates of $3.72 billion, according to data compiled by LSEG.
• The orthopedics segment saw a 9.1% increase in sales to $3.0 billion, which beat analysts’ expectations of $2.72 billion.
• The company reported total revenue of $6.6 billion for the quarter, above analysts’ expectations of $6.58 billion.
• Stryker earned $3.69 per share for the quarter on an adjusted basis, surpassing estimates of $3.49 apiece.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shailesh Kuber)
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