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Published in Health Care

Stryker Q4 sales affected by resurgence in COVID-19 cases

BY Thursday, January 28, 2021 10:45am

KALAMAZOO — Stryker Corp.’s sales grew 3.2 percent in the fourth quarter amid a resurgence of COVID-19 infections that affected market demand for elective medical procedures.

Kalamazoo-based Stryker (NYSE: SYK) on Wednesday reported quarterly sales of $4.26 billion, which compares to $4.13 billion in the fourth quarter of 2019. Stryker recorded lower net income of $568 million, or $1.49 per diluted share, versus $725 million, or $1.90 per diluted share, a year earlier.

Chairman and CEO Kevin Lobo COURTESY PHOTO

“During the fourth quarter, elective procedures were negatively pressured in most regions globally as localized infection and hospitalization rates surged through the month of December. As a result, growth was uneven and correlated to the state of the pandemic in each region,” Chairman and CEO Kevin Lobo said during a conference call with analysts to discuss quarterly results. “The areas impacted the most include the U.S. and many of the countries in Western Europe.”

For all of 2020, Stryker’s sales declined 3.6 percent from 2019 to $14.35 billion, with lower net income of $2.08 billion, or $5.48 per diluted share.

The company in Wednesday’s sales and earnings report said that it continues “to monitor and evaluate the impact the global response to the COVID-19 pandemic has had, and will continue to have, on our operations and financial results.” 

Stryker expects 2021 organic sales growth of 8 percent to 10 percent from 2019, “as this is a more normal baseline given the variability throughout 2020.” Stryker in 2019 had sales of nearly $14.9 billion.

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