Stryker reports 2023 operating results and 2024 outlook
- Net sales increased 11.8% to $5.8 billion in the fourth quarter and 11.1% to $20.5 billion for the full year of 2023
- Adjusted EPS increased 15.3% to $3.46 in the fourth quarter and 13.5% to $10.60 for the full year
- 2024 organic net sales growth expected to be in the range of 7.5% to 9.0%
- Adjusted net earnings per diluted share expected to be in the range of $11.70 to $12.00
- None.
Insights
Stryker's reported net sales increase of 11.8% in Q4 and 11.1% for the full year reflects a robust growth trajectory, outpacing many competitors in the MedTech sector. The standout figure is the organic net sales growth, which indicates that the company is expanding its market share and not just benefiting from acquisitions or favorable currency exchange rates. The adjusted operating income margin improvement suggests operational efficiencies, which is a positive sign for investors concerned with profitability amidst economic uncertainties.
Furthermore, the EPS growth is particularly impressive, doubling from the previous year in Q4. This indicates not only that the company is growing its bottom line but also doing so at an accelerating rate. It's also noteworthy that the company is projecting organic net sales growth of 7.5% to 9.0% for 2024, which, while lower than 2023's performance, still represents healthy growth expectations in a stabilizing macro-economic environment.
The significant growth in the MedSurg and Neurotechnology segment, which includes both increased unit volume and higher prices, suggests that Stryker is effectively responding to market demands and possibly introducing innovative products that command a price premium. This is a key consideration for stakeholders evaluating the company's potential for sustained growth. The Orthopaedics and Spine segment's growth, despite lower prices, indicates volume-driven demand, which could be a result of demographic trends such as an aging population or increased market penetration.
It is also important to consider the potential impact of foreign currency exchange rates on future earnings. While Stryker anticipates a modest unfavorable impact, the exact extent will depend on currency fluctuations throughout the year. This introduces an element of uncertainty that stakeholders should monitor.
Within the medical device industry, Stryker's performance is indicative of a company that is effectively navigating regulatory pressures and market dynamics. The mention of costs to comply with certain medical device regulations, recall-related matters and regulatory and legal matters in their earnings analysis is a reminder of the ongoing challenges facing the industry. However, Stryker's ability to deliver strong adjusted earnings despite these headwinds is a testament to their risk management and strategic planning.
The company's forward-looking statements regarding pricing actions and the anticipated full-year impact being roughly flat suggests confidence in their pricing strategy and value proposition to customers. This is critical in an industry where pricing can be a significant lever for maintaining competitive advantage.
Portage, Michigan, Jan. 30, 2024 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK) reported operating results for the fourth quarter and full year of 2023:
Fourth Quarter Results
- Reported net sales increased
11.8% to$5.8 billion - Organic net sales increased
11.4% - Reported operating income margin of
21.6% - Adjusted operating income margin(1) increased 60 bps to
27.2% - Reported EPS increased
102.7% to$2.98 - Adjusted EPS(1) increased
15.3% to$3.46
| Fourth Quarter Net Sales Growth Overview | ||||||||||||||
| Reported | Foreign Currency Exchange | Constant Currency | Acquisitions / Divestitures | Organic | ||||||||||
| MedSurg and Neurotechnology | 12.3 | % | 0.3 | % | 12.0 | % | 0.2 | % | 11.8 | % | ||||
| Orthopaedics and Spine | 11.0 | 0.3 | 10.7 | — | 10.7 | |||||||||
| Total | 11.8 | % | 0.3 | % | 11.5 | % | 0.1 | % | 11.4 | % | ||||
Full Year Results
- Reported net sales increased
11.1% to$20.5 billion - Organic net sales increased
11.5% - Reported operating income margin of
19.0% - Adjusted operating income margin(1) increased 40 bps to
24.2% - Reported EPS increased
33.7% to$8.25 - Adjusted EPS(1) increased
13.5% to$10.60
| Full Year Net Sales Growth Overview | ||||||||||||||
| Reported | Foreign Currency Exchange | Constant Currency | Acquisitions / Divestitures | Organic | ||||||||||
| MedSurg and Neurotechnology | 11.5 | % | (0.6) % | 12.1 | % | 0.3 | % | 11.8 | % | |||||
| Orthopaedics and Spine | 10.5 | (0.6) | 11.1 | — | 11.1 | |||||||||
| Total | 11.1 | % | (0.5) % | 11.6 | % | 0.1 | % | 11.5 | % | |||||
"We drove excellent organic sales growth of over
Sales Analysis
Consolidated net sales of
MedSurg and Neurotechnology net sales of
Orthopaedics and Spine net sales of
Earnings Analysis
Reported net earnings of
2024 Outlook
Based on our momentum from 2023, strong procedural volumes, healthy demand for capital products and a stabilizing macro-economic environment, we expect 2024 organic net sales growth(2) to be in the range of
(1) A reconciliation of the non-GAAP financial measures: adjusted gross profit margin, adjusted operating income and adjusted operating income margin, adjusted net earnings and adjusted net earnings per diluted share, to the most directly comparable GAAP measures: gross profit margin, operating income and operating income margin, net earnings and net earnings per diluted share, and other important information accompanies this press release.
(2) We are unable to present a quantitative reconciliation of our expected net sales growth to expected organic net sales growth as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisitions and divestitures and the impact of foreign currency exchange rates. We are unable to present a quantitative reconciliation of our expected net earnings per diluted share to expected adjusted net earnings per diluted share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of structural optimization and other special charges, acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.
Conference Call on Tuesday, January 30, 2024
As previously announced, we will host a conference call on Tuesday, January 30, 2024 at 4:30 p.m., Eastern Time, to discuss our operating results for the quarter and year ended December 31, 2023 and provide an operational update.
Please register for this conference call at: https://www.veracast.com/webcasts/stryker/events/SYK4Q23.cfm. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry. Registration is open throughout the live call. To ensure you are connected prior to the beginning of the call, we suggest registering a minimum of 15 minutes before the start of the call.
A simultaneous webcast of the call will be accessible via the Investor Relations page of our website at www.stryker.com. For those not planning to ask a question of management, we recommend listening via the webcast. Please allow 15 minutes to register, download and install any necessary software.
Following the conference call, a replay will be available on our website up to one year from the time of the earnings call.
Caution Concerning Forward-Looking Statements
This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions, or the anticipation thereof, that could adversely affect the level of demand for our products; geopolitical risks, including from international conflicts and upcoming elections in the United States and other countries, which could, among other things, lead to increased market volatility; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; changes in foreign currency exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect United States Food and Drug Administration approval of new products; inflationary pressures; increased interest rates; supply chain disruptions; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the ultimate total cost with respect to recall-related matters; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; changes in tax laws and regulations; the impact of legislation to reform the healthcare system in the United States or other countries; costs to comply with medical device regulations; changes in financial markets; changes in our credit ratings; changes in the competitive environment; our ability to integrate and realize the anticipated benefits of acquisitions in full or at all or within the expected timeframes; our ability to realize anticipated cost savings; potential negative impacts resulting from environmental, social and governance (ESG) and sustainability related matters; the impact on our operations and financial results of any public health emergency and any related policies and actions by governments or other third parties; and breaches or failures of our or our vendors' information technology systems or products, including by cyber-attack, data leakage, unauthorized access or theft. Additional information concerning these and other factors is contained in our filings with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We disclaim any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that affect the likelihood that actual results will differ from those contained in the forward-looking statements.
Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology, Orthopaedics and Spine that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com.
For investor inquiries please contact:
Jason Beach, Vice President, Investor Relations at 269-385-2600 or jason.beach@stryker.com
For media inquiries please contact:
Yin Becker, Vice President, Chief Corporate Affairs Officer at 269-385-2600 or yin.becker@stryker.com
| STRYKER CORPORATION | |||||||||||||||||||||
| For the Three Months and Full Year December 31 | |||||||||||||||||||||
| (Unaudited - Millions of Dollars, Except Per Share Amounts) | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||||||
| Three Months | Full Year | ||||||||||||||||||||
| 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||
| Net sales | $ | 5,815 | $ | 5,202 | 11.8 | % | $ | 20,498 | $ | 18,449 | 11.1 | % | |||||||||
| Cost of sales | 2,112 | 1,966 | 7.4 | 7,440 | 6,871 | 8.3 | |||||||||||||||
| Gross profit | $ | 3,703 | $ | 3,236 | 14.4 | % | $ | 13,058 | $ | 11,578 | 12.8 | % | |||||||||
| % of sales | 63.7 | % | 62.2 | % | 63.7 | % | 62.8 | % | |||||||||||||
| Research, development and engineering expenses | 350 | 326 | 7.4 | 1,388 | 1,454 | (4.5) | |||||||||||||||
| Selling, general and administrative expenses | 1,941 | 1,751 | 10.9 | 7,129 | 6,455 | 10.4 | |||||||||||||||
| Recall charges, net | 6 | (29) | nm | 18 | (15) | nm | |||||||||||||||
| Amortization of intangible assets | 149 | 158 | (5.7) | 635 | 627 | 1.3 | |||||||||||||||
| Goodwill impairment | — | 216 | nm | — | 216 | nm | |||||||||||||||
| Total operating expenses | $ | 2,446 | $ | 2,422 | 1.0 | % | $ | 9,170 | $ | 8,737 | 5.0 | % | |||||||||
| Operating income | $ | 1,257 | $ | 814 | 54.4 | % | $ | 3,888 | $ | 2,841 | 36.9 | % | |||||||||
| % of sales | 21.6 | % | 15.6 | % | 19.0 | % | 15.4 | % | |||||||||||||
| Other income (expense), net | (31) | (53) | (41.5) | (215) | (158) | 36.1 | |||||||||||||||
| Earnings before income taxes | $ | 1,226 | $ | 761 | 61.1 | % | $ | 3,673 | $ | 2,683 | 36.9 | % | |||||||||
| Income taxes | 83 | 198 | (58.1) | 508 | 325 | 56.3 | |||||||||||||||
| Net earnings | $ | 1,143 | $ | 563 | 103.0 | % | $ | 3,165 | $ | 2,358 | 34.2 | % | |||||||||
| Net earnings per share of common stock: | |||||||||||||||||||||
| Basic | $ | 3.01 | $ | 1.48 | 103.4 | % | $ | 8.34 | $ | 6.23 | 33.9 | % | |||||||||
| Diluted | $ | 2.98 | $ | 1.47 | 102.7 | % | $ | 8.25 | $ | 6.17 | 33.7 | % | |||||||||
| Weighted-average shares outstanding (in millions): | |||||||||||||||||||||
| Basic | 380.0 | 378.5 | 379.6 | 378.2 | |||||||||||||||||
| Diluted | 383.9 | 382.3 | 383.7 | 382.2 | |||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| December 31 | |||||
| 2023 | 2022 | ||||
| Assets | |||||
| Cash and cash equivalents | $ | 2,940 | $ | 1,844 | |
| Marketable securities | 82 | 84 | |||
| Accounts receivable, net | 3,765 | 3,565 | |||
| Inventories | 4,843 | 3,995 | |||
| Prepaid expenses and other current assets | 857 | 787 | |||
| Total current assets | $ | 12,487 | $ | 10,275 | |
| Property, plant and equipment, net | 3,215 | 2,970 | |||
| Goodwill and other intangibles, net | 19,836 | 19,765 | |||
| Noncurrent deferred income tax assets | 1,670 | 1,410 | |||
| Other noncurrent assets | 2,673 | 2,464 | |||
| Total assets | $ | 39,881 | $ | 36,884 | |
| Liabilities and shareholders' equity | |||||
| Current liabilities | $ | 7,890 | $ | 6,303 | |
| Long-term debt, excluding current maturities | 10,901 | 11,857 | |||
| Income taxes | 567 | 641 | |||
| Other noncurrent liabilities | 1,930 | 1,467 | |||
| Shareholders' equity | 18,593 | 16,616 | |||
| Total liabilities and shareholders' equity | $ | 39,881 | $ | 36,884 | |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| December 31 | |||||||
| 2023 | 2022 | ||||||
| Operating activities | |||||||
| Net earnings | $ | 3,165 | $ | 2,358 | |||
| Depreciation | 393 | 371 | |||||
| Amortization of intangible assets | 635 | 627 | |||||
| Changes in operating assets, liabilities, income taxes payable and other, n | (513) | (732) | |||||
| Net cash provided by operating activities | $ | 3,680 | $ | 2,624 | |||
| Investing activities | |||||||
| Acquisitions, net of cash acquired | $ | (390) | $ | (2,563) | |||
| Purchases of property, plant and equipment | (575) | (588) | |||||
| Other investing, net | 3 | 227 | |||||
| Net cash used in investing activities | $ | (962) | $ | (2,924) | |||
| Financing activities | |||||||
| Borrowings (payments) of debt, net | $ | (277) | $ | 472 | |||
| Payments of dividends | (1,139) | (1,051) | |||||
| Other financing, net | (178) | (170) | |||||
| Net cash provided by (used in) financing activities | $ | (1,594) | $ | (749) | |||
| Effect of exchange rate changes on cash and cash equivalents | (28) | (51) | |||||
| Change in cash and cash equivalents | $ | 1,096 | $ | (1,100) | |||
nm - not meaningful
| STRYKER CORPORATION |
| For the Three Months and Full Year December 31 |
| (Unaudited - Millions of Dollars) |
| SALES GROWTH ANALYSIS | |||||||||||||||||||
| Three Months | Full Year | ||||||||||||||||||
| Percentage Change | Percentage Change | ||||||||||||||||||
| 2023 | 2022 | As Reported | Constant Currency | 2023 | 2022 | As Reported | Constant Currency | ||||||||||||
| Geographic: | |||||||||||||||||||
| United States | $ | 4,356 | $ | 3,862 | 12.8 | % | 12.8 | % | $ | 15,257 | $ | 13,638 | 11.9 | % | 11.9 | % | |||
| International | 1,459 | 1,340 | 8.9 | 7.8 | 5,241 | 4,811 | 8.9 | 10.9 | |||||||||||
| Total | $ | 5,815 | $ | 5,202 | 11.8 | % | 11.5 | % | $ | 20,498 | $ | 18,449 | 11.1 | % | 11.6 | % | |||
| Segment: | |||||||||||||||||||
| MedSurg and Neurotechnology | $ | 3,427 | $ | 3,051 | 12.3 | % | 12.0 | % | $ | 11,836 | $ | 10,611 | 11.5 | % | 12.1 | % | |||
| Orthopaedics and Spine | 2,388 | 2,151 | 11.0 | 10.7 | 8,662 | 7,838 | 10.5 | 11.1 | |||||||||||
| Total | $ | 5,815 | $ | 5,202 | 11.8 | % | 11.5 | % | $ | 20,498 | $ | 18,449 | 11.1 | % | 11.6 | % | |||
| SUPPLEMENTAL SALES GROWTH ANALYSIS | |||||||||||||||||
| Three Months | |||||||||||||||||
| United States | International | ||||||||||||||||
| Percentage Change | |||||||||||||||||
| 2023 | 2022 | As Reported | Constant Currency | As Reported | As Reported | Constant Currency | |||||||||||
| MedSurg and Neurotechnology: | |||||||||||||||||
| Instruments | $ | 736 | $ | 653 | 12.5 | % | 12.0 | % | 12.5 | % | 12.3 | % | 10.0 | % | |||
| Endoscopy | 892 | 779 | 14.6 | 14.4 | 17.9 | 1.1 | 0.6 | ||||||||||
| Medical | 1,042 | 936 | 11.4 | 11.2 | 12.9 | 6.0 | 4.9 | ||||||||||
| Neurovascular | 320 | 299 | 6.7 | 6.6 | 7.6 | 6.2 | 6.1 | ||||||||||
| Neuro Cranial | 437 | 384 | 14.1 | 13.8 | 14.0 | 14.4 | 12.7 | ||||||||||
| $ | 3,427 | $ | 3,051 | 12.3 | % | 12.0 | % | 14.0 | % | 6.9 | % | 5.9 | % | ||||
| Orthopaedics and Spine: | |||||||||||||||||
| Knees | $ | 630 | $ | 552 | 14.2 | % | 13.9 | % | 12.9 | % | 18.0 | % | 16.9 | % | |||
| Hips | 414 | 375 | 10.2 | 10.3 | 12.9 | 5.5 | 5.8 | ||||||||||
| Trauma and Extremities | 860 | 774 | 11.0 | 10.3 | 12.1 | 8.3 | 5.5 | ||||||||||
| Spine | 318 | 297 | 7.0 | 6.5 | 6.0 | 9.9 | 7.7 | ||||||||||
| Other | 166 | 153 | 9.3 | 10.4 | 3.0 | 25.5 | 29.0 | ||||||||||
| $ | 2,388 | $ | 2,151 | 11.0 | % | 10.7 | % | 10.9 | % | 11.3 | % | 10.1 | % | ||||
| Total | $ | 5,815 | $ | 5,202 | 11.8 | % | 11.5 | % | 12.8 | % | 8.9 | % | 7.8 | % | |||
| Full Year | |||||||||||||||||
| United States | International | ||||||||||||||||
| Percentage Change | |||||||||||||||||
| 2023 | 2022 | As Reported | Constant Currency | As Reported | As Reported | Constant Currency | |||||||||||
| MedSurg and Neurotechnology: | |||||||||||||||||
| Instruments | $ | 2,569 | $ | 2,279 | 12.7 | % | 13.0 | % | 13.3 | % | 10.4 | % | 11.8 | % | |||
| Endoscopy | 3,033 | 2,725 | 11.3 | 11.7 | 12.1 | 7.6 | 9.9 | ||||||||||
| Medical | 3,459 | 3,031 | 14.1 | 14.4 | 15.0 | 10.8 | 12.3 | ||||||||||
| Neurovascular | 1,226 | 1,200 | 2.1 | 4.0 | 8.1 | (1.4) | 1.5 | ||||||||||
| Neuro Cranial | 1,549 | 1,376 | 12.6 | 13.0 | 11.9 | 16.1 | 18.4 | ||||||||||
| $ | 11,836 | $ | 10,611 | 11.5 | % | 12.1 | % | 13.0 | % | 7.0 | % | 9.1 | % | ||||
| Orthopaedics and Spine: | |||||||||||||||||
| Knees | $ | 2,273 | $ | 1,997 | 13.9 | % | 14.4 | % | 12.2 | % | 18.8 | % | 20.9 | % | |||
| Hips | 1,544 | 1,413 | 9.2 | 10.4 | 10.1 | 7.7 | 10.7 | ||||||||||
| Trauma and Extremities | 3,147 | 2,807 | 12.1 | 12.2 | 12.9 | 10.1 | 10.5 | ||||||||||
| Spine | 1,189 | 1,146 | 3.8 | 4.0 | 5.7 | (1.6) | (0.9) | ||||||||||
| Other | 509 | 475 | 7.1 | 8.8 | (2.0) | 33.8 | 40.9 | ||||||||||
| $ | 8,662 | $ | 7,838 | 10.5 | % | 11.1 | % | 10.2 | % | 11.2 | % | 13.0 | % | ||||
| Total | $ | 20,498 | $ | 18,449 | 11.1 | % | 11.6 | % | 11.9 | % | 8.9 | % | 10.9 | % | |||
Note: Fourth quarter and full year 2023 had the same number of selling days as 2022. Beginning in the first quarter 2023 we consolidated Other MedSurg and Neurotechnology into Endoscopy as Other MedSurg and Neurotechnology (primarily Sustainability Solutions) has been fully integrated into our Endoscopy business. Endoscopy includes sales related to Other of
SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
We supplement the reporting of our financial information determined under accounting principles generally accepted in the United States (GAAP) with certain non-GAAP financial measures, including: percentage sales growth in constant currency; percentage organic sales growth; adjusted gross profit; adjusted selling, general and administrative expenses; adjusted research, development and engineering expenses; adjusted operating income; adjusted other income (expense), net; adjusted income taxes; adjusted effective income tax rate; adjusted net earnings; and adjusted net earnings per diluted share (Diluted EPS). We believe these non-GAAP financial measures provide meaningful information to assist investors and shareholders in understanding our financial results and assessing our prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of our operations because they exclude items that may not be indicative of or are unrelated to our core operating results and provide a baseline for analyzing trends in our underlying businesses. Management uses these non-GAAP financial measures for reviewing the operating results of reportable business segments and analyzing potential future business trends in connection with our budget process and bases certain management incentive compensation on these non-GAAP financial measures.
To measure percentage sales growth in constant currency, we remove the impact of changes in foreign currency exchange rates that affect the comparability and trend of sales. Percentage sales growth in constant currency is calculated by translating current and prior year results at the same foreign currency exchange rate. To measure percentage organic sales growth, we remove the impact of changes in foreign currency exchange rates, acquisitions and divestitures, which affect the comparability and trend of sales. Percentage organic sales growth is calculated by translating current year and prior year results at the same foreign currency exchange rate excluding the impact of acquisitions and divestitures. To measure earnings performance on a consistent and comparable basis, we exclude certain items that affect the comparability of operating results and the trend of earnings. The income tax effect of each adjustment was determined based on the tax effect of the jurisdiction in which the related pre-tax adjustment was recorded.
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, selling, general and administrative expenses, research, development and engineering expenses, operating income, other income (expense), net, income taxes, effective income tax rate, net earnings and net earnings per diluted share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the reconciliations to corresponding GAAP financial measures below, provide a more complete understanding of our business. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
The following reconciles the non-GAAP financial measures discussed above with the most directly comparable GAAP financial measures. The weighted-average diluted shares outstanding used in the calculation of adjusted net earnings per diluted share are the same as those used in the calculation of reported net earnings per diluted share for the respective period.
| STRYKER CORPORATION | |||||||||||||||||||||||||
| For the Three Months and Full Year December 31 | |||||||||||||||||||||||||
| (Unaudited - Millions of Dollars, Except Per Share Amounts) | |||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures | |||||||||||||||||||||||||
| Three Months 2023 | Gross Profit | Selling, General & Administrative Expenses | Research, Development & Engineering Expenses | Operating Income | Other Income (Expense), Net | Income Taxes | Net Earnings | Effective Tax Rate | Diluted EPS | ||||||||||||||||
| Reported | $ | 3,703 | $ | 1,941 | $ | 350 | $ | 1,257 | $ | (31) | $ | 83 | $ | 1,143 | 6.8 | % | $ | 2.98 | |||||||
| Reported percent net sales | 63.7 | % | 33.4 | % | 6.0 | % | 21.6 | % | (0.5) % | nm | 19.7 | % | |||||||||||||
| Acquisition and integration-related costs | |||||||||||||||||||||||||
| Inventory stepped-up to fair value | — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Other acquisition and integration-related (a) | — | (13) | — | 13 | — | — | 13 | (0.2) | 0.04 | ||||||||||||||||
| Amortization of purchased intangible assets | — | — | — | 149 | — | 28 | 121 | 0.6 | 0.31 | ||||||||||||||||
| Structural optimization and other special charges (b) | 9 | (54) | (1) | 64 | — | 15 | 49 | 0.5 | 0.13 | ||||||||||||||||
| Goodwill impairment | — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Medical device regulations (c) | 1 | — | (21) | 22 | — | 5 | 17 | 0.1 | 0.04 | ||||||||||||||||
| Recall-related matters (d) | — | — | — | 6 | — | 1 | 5 | — | 0.02 | ||||||||||||||||
| Regulatory and legal matters (e) | — | (73) | — | 73 | — | 25 | 48 | 1.2 | 0.12 | ||||||||||||||||
| Tax matters (f) | — | — | — | — | — | 70 | (70) | 5.6 | (0.18) | ||||||||||||||||
| Adjusted | $ | 3,713 | $ | 1,801 | $ | 328 | $ | 1,584 | $ | (31) | $ | 227 | $ | 1,326 | 14.6 | % | $ | 3.46 | |||||||
| Adjusted percent net sales | 63.9 | % | 31.0 | % | 5.6 | % | 27.2 | % | (0.5) % | nm | 22.8 | % | |||||||||||||
| Three Months 2022 | Gross Profit | Selling, General & Administrative Expenses | Research, Development & Engineering Expenses | Operating Income | Other Income (Expense), Net | Income Taxes | Net Earnings | Effective Tax Rate | Diluted EPS | |||||||||||||||||
| Reported | $ | 3,236 | $ | 1,751 | $ | 326 | $ | 814 | $ | (53) | $ | 198 | $ | 563 | 26.0 | % | $ | 1.47 | ||||||||
| Reported percent net sales | 62.2 | % | 33.7 | % | 6.3 | % | 15.6 | % | (1.0) % | nm | 10.8 | % | ||||||||||||||
| Acquisition and integration-related costs | ||||||||||||||||||||||||||
| Inventory stepped-up to fair value | — | — | — | — | — | — | — | — | — | |||||||||||||||||
| Other acquisition and integration-related (a) | — | (42) | — | 42 | — | (16) | 58 | (2.9) | 0.15 | |||||||||||||||||
| Amortization of purchased intangible assets | — | — | — | 158 | — | 34 | 124 | 1.5 | 0.33 | |||||||||||||||||
| Structural optimization and other special charges (b) | 27 | (93) | — | 120 | — | 27 | 93 | 1.6 | 0.24 | |||||||||||||||||
| Goodwill impairment | — | — | — | 216 | — | — | 216 | (3.9) | 0.57 | |||||||||||||||||
| Medical device regulations (c) | — | — | (42) | 42 | — | 9 | 33 | 0.4 | 0.09 | |||||||||||||||||
| Recall-related matters (d) | — | — | — | (29) | — | (7) | (22) | (0.4) | (0.06) | |||||||||||||||||
| Regulatory and legal matters (e) | — | (23) | — | 23 | — | (7) | 30 | (1.5) | 0.08 | |||||||||||||||||
| Tax matters (f) | — | — | — | — | (1) | (55) | 54 | (7.0) | 0.13 | |||||||||||||||||
| Adjusted | $ | 3,263 | $ | 1,593 | $ | 284 | $ | 1,386 | $ | (54) | $ | 183 | $ | 1,149 | 13.8 | % | $ | 3.00 | ||||||||
| Adjusted percent net sales | 62.7 | % | 30.6 | % | 5.5 | % | 26.6 | % | (1.0) % | nm | 22.1 | % | ||||||||||||||
| (a) | Charges represent certain acquisition and integration-related costs associated with acquisitions, including charges for termination of sales relationships ( |
| (b) | Charges represent the costs associated with employee retention and workforce reductions ( |
| (c) | Charges represent the costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union. |
| (d) | Charges represent changes in our best estimate of the minimum of the range of probable loss to resolve certain recall-related matters. |
| (e) | Charges represent changes in our best estimate of the minimum of the range of probable loss to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements. |
| (f) | Benefits and charges represent the accounting impact of certain significant and discrete tax items, including adjustments related to the transfer of certain intellectual properties between tax jurisdictions (benefit of |
| Full Year 2023 | Gross Profit | Selling, General & Administrative Expenses | Research, Development & Engineering Expenses | Operating Income | Other Income (Expense), Net | Income Taxes | Net Earnings | Effective Tax Rate | Diluted EPS | ||||||||||||||||
| Reported | $ | 13,058 | $ | 7,129 | $ | 1,388 | $ | 3,888 | $ | (215) | $ | 508 | $ | 3,165 | 13.8 | % | $ | 8.25 | |||||||
| Reported percent net sales | 63.7 | % | 34.8 | % | 6.8 | % | 19.0 | % | (1.0) % | nm | 15.4 | % | |||||||||||||
| Acquisition and integration-related costs | |||||||||||||||||||||||||
| Inventory stepped-up to fair value | — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Other acquisition and integration-related (a) | — | (20) | — | 20 | — | (25) | 45 | (0.8) | 0.12 | ||||||||||||||||
| Amortization of purchased intangible assets | — | — | — | 635 | — | 132 | 503 | 1.2 | 1.31 | ||||||||||||||||
| Structural optimization and other special charges (b) | 39 | (166) | (1) | 206 | — | 47 | 159 | 0.5 | 0.42 | ||||||||||||||||
| Goodwill impairment | — | — | — | — | — | — | — | — | — | ||||||||||||||||
| Medical device regulations (c) | 2 | — | (94) | 96 | — | 22 | 74 | 0.2 | 0.19 | ||||||||||||||||
| Recall-related matters (d) | — | — | — | 18 | — | 4 | 14 | — | 0.04 | ||||||||||||||||
| Regulatory and legal matters (e) | — | (92) | — | 92 | — | 29 | 63 | 0.4 | 0.16 | ||||||||||||||||
| Tax matters (f) | — | — | — | — | (8) | (51) | 43 | (1.2) | 0.11 | ||||||||||||||||
| Adjusted | $ | 13,099 | $ | 6,851 | $ | 1,293 | $ | 4,955 | $ | (223) | $ | 666 | $ | 4,066 | 14.1 | % | $ | 10.60 | |||||||
| Adjusted percent net sales | 63.9 | % | 33.4 | % | 6.3 | % | 24.2 | % | (1.1) % | nm | 19.8 | % | |||||||||||||
| Full Year 2022 | Gross Profit | Selling, General & Administrative Expenses | Research, Development & Engineering Expenses | Operating Income | Other Income (Expense), Net | Income Taxes | Net Earnings | Effective Tax Rate | Diluted EPS | |||||||||||||||||
| Reported | $ | 11,578 | $ | 6,455 | $ | 1,454 | $ | 2,841 | $ | (158) | $ | 325 | $ | 2,358 | 12.1 | % | $ | 6.17 | ||||||||
| Reported percent net sales | 62.8 | % | 35.0 | % | 7.9 | % | 15.4 | % | (0.9) % | nm | 12.8 | % | ||||||||||||||
| Acquisition and integration-related costs | ||||||||||||||||||||||||||
| Inventory stepped-up to fair value | 12 | — | — | 12 | — | 3 | 9 | — | 0.02 | |||||||||||||||||
| Other acquisition and integration-related (a) | — | (138) | — | 138 | — | 34 | 104 | 0.5 | 0.27 | |||||||||||||||||
| Amortization of purchased intangible assets | — | — | — | 627 | — | 132 | 495 | 1.7 | 1.30 | |||||||||||||||||
| Structural optimization and other special charges (b) | 56 | (206) | (87) | 349 | — | 66 | 283 | 0.7 | 0.74 | |||||||||||||||||
| Goodwill impairment | — | — | — | 216 | — | — | 216 | (1.1) | 0.57 | |||||||||||||||||
| Medical device regulations (c) | 3 | — | (137) | 140 | — | 25 | 115 | 0.2 | 0.30 | |||||||||||||||||
| Recall-related matters (d) | — | — | — | (15) | — | (3) | (12) | — | (0.03) | |||||||||||||||||
| Regulatory and legal matters (e) | — | (76) | — | 76 | — | 7 | 69 | (0.2) | 0.18 | |||||||||||||||||
| Tax matters (f) | — | — | — | — | (75) | (9) | (66) | 0.1 | (0.18) | |||||||||||||||||
| Adjusted | $ | 11,649 | $ | 6,035 | $ | 1,230 | $ | 4,384 | $ | (233) | $ | 580 | $ | 3,571 | 14.0 | % | $ | 9.34 | ||||||||
| Adjusted percent net sales | 63.1 | % | 32.7 | % | 6.7 | % | 23.8 | % | (1.3) % | nm | 19.4 | % | ||||||||||||||
| (a) | Charges represent certain acquisition and integration-related costs associated with acquisitions, including charges for termination of sales relationships ( |
| (b) | Charges represent the costs associated with employee retention and workforce reductions ( |
| (c) | Charges represent the costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union. |
| (d) | Charges represent changes in our best estimate of the minimum of the range of probable loss to resolve certain recall-related matters. |
| (e) | Charges represent changes in our best estimate of the minimum of the range of probable loss to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements. |
| (f) | Benefits and charges represent the accounting impact of certain significant and discrete tax items, including adjustments related to the transfer of certain intellectual properties between tax jurisdictions (charges of |
FAQ
What is the net sales growth percentage for Stryker in the fourth quarter of 2023?
What is the adjusted EPS increase percentage for Stryker in the fourth quarter of 2023?
What is Stryker's expected organic net sales growth range for 2024?
What is Stryker's expected adjusted net earnings per diluted share range for 2024?
