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Published in Health Care

Stryker Q3 earnings rebound after pandemic-related declines

BY Friday, October 30, 2020 09:41am

KALAMAZOO — Stryker Corp.’s sales and earnings rebounded in the third quarter after falling sharply in the prior three months and early weeks of the COVID-19 pandemic.

The Kalamazoo-based Stryker (NYSE: SYK) on Thursday reported $3.73 billion in sales for the July-through-September period, a 4.2-percent increase from the $3.58 billion in the same quarter last year.

Stryker Chairman and CEO Kevin Lob COURTESY PHOTO

Stryker recorded quarterly net income of $621 million, or $1.63 per diluted share. That compares to $466 million in net income, or $1.23 per diluted share, in the third quarter of 2019.

The quarterly results contrasted the $83 million, 24-percent year-to-date sales decline Stryker reported for the second quarter as restrictions in the U.S. and worldwide caused delays and deferrals of medical procedures and reduced demand for medical equipment, devices and orthopedic implants.

“This represents a rapid improvement in our business, driven by a progressive return of elective procedures (and) ongoing demand for our medical capital products,” Chairman and CEO Kevin Lobo said in a conference call with brokerage analysts. Stryker during the quarter also maintained strong sales of the Mako robot used in joint replacement surgery that surpassed 1,000 installations in the quarter since launching in 2016, Lobo said.

Still, Stryker “saw uneven growth globally that correlates to the state of the pandemic,” Lobo said. “While we are pleased with the recovery of our business, the environment remains uncertain as flare ups of positive COVID cases are continuing.”

Stryker’s sales for the first three quarters of 2020 totaled $10.08 billion, a decline of 6.2 percent from 2019’s pace, with lower net income of $1.03 billion, or $2.71 per diluted share.

As it has done since the pandemic began, Stryker did not offer guidance for sales and earnings in the present quarter “due to the continued uncertainty and lack of stability in many markets,” Lobo said. Stryker plans to provide guidance for 2021 in January, he said.

“The big unknown is sort of how this pandemic evolved. It’s still going to be with us obviously through the first half of next year in some way, shape or form,” Lobo said.

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