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    Stryker Corp (SYK)

    CFO Change

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    Business Description

    Stryker Corporation is a global leader in medical technologies, providing innovative products and services aimed at enhancing patient and healthcare outcomes . The company operates through two main business segments: MedSurg and Neurotechnology, and Orthopaedics and Spine . Stryker's offerings include a wide range of medical instruments, endoscopic devices, and orthopedic solutions .

    1. MedSurg and Neurotechnology - Offers a diverse range of products including Instruments, Endoscopy, Medical, Neurovascular, and Neuro Cranial solutions, contributing significantly to the company's revenue .

      • Instruments - Provides surgical tools and equipment for various medical procedures .
      • Endoscopy - Develops advanced endoscopic devices for minimally invasive surgeries .
      • Medical - Supplies a variety of medical devices and equipment for healthcare facilities .
      • Neurovascular - Specializes in products for the treatment of neurovascular conditions .
      • Neuro Cranial - Focuses on solutions for cranial surgeries and treatments .

    2. Orthopaedics and Spine - Delivers comprehensive orthopedic and spine solutions, including Knees, Hips, Trauma and Extremities, Spine, and Other products .

      • Trauma and Extremities - Provides implants and devices for trauma care and extremity surgeries .
      • Knees - Offers knee replacement and repair solutions .
      • Spine - Develops products for spinal surgeries and treatments .
      • Hips - Supplies hip replacement and repair solutions .
      • Other - Includes various additional orthopedic products .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Kevin A. LoboChair, Chief Executive Officer, and President2011Kevin A. Lobo has been serving as the Chair, Chief Executive Officer, and President of Stryker Corporation since 2011. He held various leadership roles within the company, including Group President of Stryker Orthopaedics .
    Yin C. BeckerVice President, Chief Corporate Affairs Officer2016Yin C. Becker is the Vice President, Chief Corporate Affairs Officer at Stryker Corporation. She first became an executive officer in 2016 .
    William E. Berry Jr.Vice President, Chief Accounting Officer2014William E. Berry Jr. is the Vice President and Chief Accounting Officer at Stryker Corporation. He first became an executive officer in 2014 .
    Glenn S. BoehnleinVice President, Chief Financial Officer2016Glenn S. Boehnlein is the Vice President and Chief Financial Officer of Stryker Corporation. He first became an executive officer in 2016 .
    M. Kathryn FinkVice President, Chief Human Resources Officer2016M. Kathryn Fink is the Vice President, Chief Human Resources Officer at Stryker Corporation. She first became an executive officer in 2016 .
    Robert S. FletcherVice President, Chief Legal Officer2019Robert S. Fletcher is the Vice President and Chief Legal Officer at Stryker Corporation. He became an executive officer in 2019. Before joining Stryker, he held various legal leadership roles at Johnson & Johnson .
    Viju S. MenonGroup President, Global Quality and Operations2018Viju S. Menon is the Group President, Global Quality and Operations at Stryker Corporation. He became an executive officer in 2018. Before joining Stryker, he held senior supply chain roles at Verizon Communications Inc. .
    J. Andrew PierceGroup President, MedSurg and NeurotechnologyOctober 1, 2021J. Andrew Pierce is the Group President, MedSurg and Neurotechnology at Stryker Corporation. He became an executive officer of the company on October 1, 2021 .
    Spencer S. StilesGroup President, Orthopaedics and SpineOctober 1, 2021Spencer S. Stiles is the Group President, Orthopaedics and Spine at Stryker Corporation. He became an executive officer of the company on October 1, 2021 .

    Questions to Ask Management

    1. Given the significant margin expansion required in the second half to meet your goal of 100 basis points operating margin growth for 2024, what specific actions are you implementing to achieve this, and how confident are you in the visibility of both gross margin improvements and SG&A leverage?

    2. The Foot & Ankle market has been unexpectedly soft for two consecutive quarters; what proactive measures are you taking to address this downturn, and what strategies do you have in place if the anticipated rebound does not occur as quickly as expected?

    3. Recent supply chain disruptions, particularly in flow diverters within your Neurovascular business, have impacted performance; can you detail the underlying causes, your timeline for resolution, and how these issues might influence your growth outlook in this segment?

    4. Despite recognizing the potential in the tissue surgical robotics market, Stryker has not made a definitive move into this space; what are the key obstacles or strategic considerations preventing you from entering, and how do you plan to remain competitive as the market advances?

    5. With recent acquisitions like Heartland in Extremities and Moly in Breast Care, how do these additions fit into your broader strategic vision, and what are your plans to effectively integrate and expand these businesses to contribute significantly to growth?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateMarch 2015
    End Date/DurationNot specified
    Total Additional Amount$2,000 million
    Remaining Authorization$1,033 million
    DetailsPurchases can be made from time to time in the open market, in privately negotiated transactions, or otherwise. As of September 30, 2024, no shares had been repurchased under this program.

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2024$559Floating Rate NotesFloating Rate3.6% = (559 / 15,484) * 100
    2024$9510.250% Senior Unsecured Notes0.250%6.1% = (951 / 15,484) * 100
    2025$6491.150% Senior Unsecured Notes1.150%4.2% = (649 / 15,484) * 100
    2025$7493.375% Senior Unsecured Notes3.375%4.8% = (749 / 15,484) * 100
    2026$9973.500% Senior Unsecured Notes3.500%6.4% = (997 / 15,484) * 100
    2027$8372.125% Senior Unsecured Notes2.125%5.4% = (837 / 15,484) * 100
    2028$1,862Multiple Notes (3.650%, 4.850%, 3.375%)Various12.0% = (1,862 / 15,484) * 100
    2029$1,635Multiple Notes (0.750%, 4.250%)Various10.6% = (1,635 / 15,484) * 100
    2030$1,712Multiple Notes (1.950%, 2.625%)Various11.1% = (1,712 / 15,484) * 100
    2031$8321.000% Senior Unsecured Notes1.000%5.4% = (832 / 15,484) * 100
    2032$8873.375% Senior Unsecured Notes3.375%5.7% = (887 / 15,484) * 100
    2034$7404.625% Senior Unsecured Notes4.625%4.8% = (740 / 15,484) * 100
    2036$6603.625% Senior Unsecured Notes3.625%4.3% = (660 / 15,484) * 100
    2043$3934.100% Senior Unsecured Notes4.100%2.5% = (393 / 15,484) * 100
    2044$3964.375% Senior Unsecured Notes4.375%2.6% = (396 / 15,484) * 100
    2046$9834.625% Senior Unsecured Notes4.625%6.3% = (983 / 15,484) * 100
    2050$6422.900% Senior Unsecured Notes2.900%4.1% = (642 / 15,484) * 100

    Auditor

    NameStart DateEnd DateReason for Change
    Ernst & Young LLP1974 PresentCurrent auditor

    Latest news

    Recent developments and announcements about SYK.

    Financial Reporting

      Earnings Call

      ·
      8 days ago

      The earnings call transcript for Stryker (SYK) has been released, providing key insights into the company's financial performance, forward guidance, and strategic initiatives. Below is a summary of the main points:

      Revenue and Profit Performance

      • Stryker reported strong financial results for Q4 2024 and the full year, with organic sales growth exceeding 10% for both periods. U.S. organic sales growth was 10.6%, while international organic sales growth reached 8.8%.
      • Adjusted EPS for Q4 was $4.01, and for the full year, it was $12.19, representing 16% and 15% growth, respectively, compared to 2023.
      • For 2025, the company has provided guidance for organic sales growth of 8% to 9% and adjusted EPS in the range of $13.45 to $13.70.

      Management’s Forward Guidance

      • Stryker remains optimistic about its growth trajectory, citing robust pipelines, strong commercial execution, and continued product innovation. The company expects another year of double-digit growth in its Medical division and sustained momentum across other business units.
      • The divestiture of the Spine business is expected to have minimal impact on overall performance, with the company focusing on higher-growth areas like Interventional Spine and enabling technologies.

      Market Conditions and Strategic Initiatives

      • The trauma and extremities business had an exceptional Q4, driven by strong sales force execution and the success of the Pangea product line. Management expects this segment to perform well in 2025.
      • The company highlighted its focus on high-growth markets, including Peripheral Vascular, Neuromodulation, and soft tissue robotics, as part of its M&A strategy. Recent acquisitions are performing at or above expectations, contributing to the company’s growth.
      • Stryker is also advancing its robotic solutions, such as the Mako Shoulder and Spine systems, which are expected to drive long-term growth despite requiring initial change management and training.

      Analyst Questions and Management Responses

      • Analysts inquired about the sustainability of the company’s growth rate, with management expressing confidence in its ability to maintain high performance due to strong pipelines and commercial strategies.
      • Questions about the impact of the Spine divestiture and the Inari acquisition were addressed, with management emphasizing minimal disruption and alignment with long-term strategic goals.
      • Analysts also sought clarity on the capital expenditure environment, with management reporting a positive outlook and no significant changes in customer behavior.

      Key Takeaways

      • Stryker is well-positioned for continued growth in 2025, supported by strong financial performance, strategic divestitures, and a focus on innovation.
      • The company’s guidance reflects confidence in its ability to navigate market conditions and capitalize on growth opportunities across its portfolio.
      • Management remains committed to driving operational efficiencies and leveraging its global footprint to enhance margins and profitability.

      For further updates, Stryker plans to share its Q1 2025 results in early May.

      Earnings Report

      ·
      8 days ago

      Stryker Corporation (SYK) Earnings Results for Q4 and Full Year 2024

      Stryker Corporation has released its earnings results for the fourth quarter and full year ending December 31, 2024. Below are the key highlights:

      Fourth Quarter 2024 Results

      • Net Sales: Increased by 10.7% to $6.4 billion.
      • Organic Net Sales Growth: 10.2%, driven by a 9.1% increase in unit volume and 1.1% from higher prices.
      • Operating Income Margin: Reported at 9.0%, while the adjusted operating income margin rose by 200 basis points to 29.2%.
      • Earnings Per Share (EPS):
        • Reported EPS: $1.41, a 52.7% decrease.
        • Adjusted EPS: $4.01, a 15.9% increase.

      Full Year 2024 Results

      • Net Sales: Increased by 10.2% to $22.6 billion.
      • Organic Net Sales Growth: 10.2%, with 9.1% from unit volume growth and 1.1% from higher prices.
      • Operating Income Margin: Reported at 16.3%, while the adjusted operating income margin increased by 110 basis points to 25.3%.
      • Earnings Per Share (EPS):
        • Reported EPS: $7.76, a 5.9% decrease.
        • Adjusted EPS: $12.19, a 15.0% increase.

      Segment Performance

      MedSurg and Neurotechnology

      • Q4 Net Sales: $3.9 billion, up 10.6%.
      • Full Year Net Sales: $13.5 billion, up 11.1%.
      • Organic Net Sales Growth: 10.1% in Q4 and 11.2% for the full year.

      Orthopaedics

      • Q4 Net Sales: $2.5 billion, up 10.8%.
      • Full Year Net Sales: $9.1 billion, up 8.9%.
      • Organic Net Sales Growth: 10.2% in Q4 and 8.7% for the full year.

      Key Trends and Updates

      • Goodwill Impairments: The company recorded $818 million in goodwill and other impairments related to its Spine business in Q4, impacting reported earnings.
      • Adjusted Metrics: Adjusted net earnings for the full year were $4.7 billion, a 15.6% increase, with adjusted EPS of $12.19.
      • 2025 Outlook: Stryker expects organic net sales growth of 8.0% to 9.0% and adjusted EPS in the range of $13.45 to $13.70. The company also anticipates the completion of its acquisition of Inari by February 2025, which is expected to contribute $590 million in sales for the year.

      For further details, Stryker will host a conference call on January 28, 2025, at 4:30 PM ET. Registration and webcast details are available on their Investor Relations page.

    Corporate Leadership

      CFO Change

      ·
      8 days ago

      Glenn S. Boehnlein, the Chief Financial Officer (CFO) of Stryker Corporation, has announced his retirement effective April 1, 2025. Preston W. Wells, currently the Vice President, Group Chief Financial Officer for Orthopaedics, will be promoted to Vice President, Chief Financial Officer on the same date.

      Leadership Change

      ·
      8 days ago

      Glenn S. Boehnlein is retiring as Vice President, Chief Financial Officer of Stryker after a 22-year career. He will transition to an Advisor to the CEO role from April 1, 2025, to March 31, 2026, to support the leadership change and other responsibilities. Preston Wells, currently Group CFO for Stryker's Orthopaedics Group, will step up as Vice President, Chief Financial Officer effective April 1, 2025. Wells brings extensive financial leadership experience, including roles at Stryker and prior positions at Dialight Corporation and Johnson & Johnson.