NYSE$SYK

Stryker Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Stryker's Q2 2022 results showed sales growth but earnings were pressured by foreign currency and inflation.

Stryker reported a 4.6% increase in net sales to $4.5 billion, with organic net sales increasing by 6.1%. Reported EPS increased by 11.0% to $1.72, while adjusted EPS was $2.25. The company is confident in its full year outlook for revenue.

  • Reported net sales increased 4.6% to $4.5 billion.
  • Organic net sales increased 6.1%.
  • Reported EPS increased 11.0% to $1.72.
  • Adjusted EPS of $2.25 was in line with 2021.

Headline financials

Total Revenue

$4.49B

Previous: $4.29B+4.6%
EPS (adj)

$2.25

Previous: $2.25+0.0%
Organic Net Sales Growth

6.1%

Previous: 42.9%-85.8%
Capital Expenditures

-$262M

Previous: -$189M-38.6%
Free Cash Flow

$394M

Previous: $403M-2.2%
Net Income

$656M

Previous: $592M+10.8%
Operating Income

$772M

Previous: $732M+5.5%
Gross Profit

$2.83B

Previous: $2.77B+1.9%
Cash & Equivalents

$1.04B

Previous: $2.24B-53.4%
Total Assets

$36B

Previous: $33.7B+6.9%
Stock-Based Comp

$36M

Previous: $39M-7.7%

Revenue & EPS history

Stryker · Revenue · Quarterly

$4.49B

Q2 2022+4.6%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Stryker · $1.53B total across 1 segment · Q3 2021

  • Orthopaedics
    $1.53B+16.1%

Forward guidance

Stryker expects full year 2022 organic net sales growth to be in the range of 8% to 9%. Adjusted net earnings per diluted share are expected to be in the range of $9.30 to $9.50 per share.

Tailwinds

  • Strong order book for capital equipment
  • Sales momentum in implant businesses
  • Full year 2022 organic net sales growth expected to be in the range of 8% to 9%.
  • Continued financial discipline
  • Increased sales guidance

Headwinds

  • Continued supply chain challenges
  • Inflationary environment
  • Foreign currency exchange rates will adversely impact net sales by approximately 2% to 3%
  • Adjusted net earnings per diluted share will be adversely impacted by approximately $0.25 to $0.30
  • Anticipated future impact of foreign currency

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.7%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.7%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+11.8%

Q4 2022

Best reaction

-6.3%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%-7.2%-3.0%
Q4 2025+2.6%+1.8%+9.4%
Q3 2025-3.0%-3.1%+0.6%
Q2 2025+0.0%-0.4%+3.6%
Q1 2025+1.0%+2.7%+2.3%
Q4 2024-2.2%-2.2%-2.8%
Q3 2024+2.1%+3.1%+9.0%
Q2 2024-1.7%-0.5%+7.4%
Q1 2024-3.2%-3.1%+0.5%
Q4 2023+6.7%+8.8%+11.0%
Q3 2023+1.5%+1.1%+9.5%
Q2 2023+3.3%+2.8%+3.6%
Q1 2023-1.9%-5.0%-8.0%
Q4 2022+11.8%+13.5%+5.0%
Q3 2022-4.0%-8.0%+2.0%
Q2 2022+5.1%+6.6%+7.5%
Q1 2022-3.2%-4.5%-5.1%
Q4 2021+0.1%+0.1%+7.1%
Q3 2021-0.9%+1.5%-9.3%
Q2 2021+2.0%+2.8%+2.9%
Q1 2021-2.1%-1.0%-4.1%
Q4 2020-3.4%-4.8%+2.0%
Q3 2020-1.4%+1.6%+13.6%
Q2 2020-4.0%-6.0%-1.6%
Q1 2020-6.3%-2.5%+1.6%
Q4 2019-1.8%-1.8%-9.2%
Q3 2019+1.6%-0.4%-4.1%
Q2 2019+0.4%+0.0%+0.2%
Q1 2019+1.6%+3.4%+1.3%
Q4 2018+10.7%+9.5%+16.4%
Q3 2018-1.7%-0.7%+1.0%
Q2 2018-2.7%-3.2%-3.0%
Q1 2018+3.2%+2.2%+5.1%
Q4 2017-2.6%-3.9%-5.6%
Q3 2017+6.4%+3.1%+3.0%
Q2 2017+1.4%+1.5%-4.0%
Q1 2017+1.3%+1.4%+4.8%
Q4 2016-0.2%+3.3%+3.6%
Q3 2016+4.0%+4.5%+2.7%
Q2 2016-4.4%-4.8%-7.0%
Q1 2016-0.4%
Q4 2015+4.4%
Q3 2015-5.4%
Q2 2015+2.5%
Q1 2015+3.3%
Q4 2014+0.2%
Q3 2014+1.0%
Q2 2014-0.2%
Q1 2014-1.1%
Q4 2013-1.0%
Q3 2013+2.7%
Q2 2013+2.2%
Q1 2013+1.1%
Q4 2012+2.8%
Q3 2012+0.3%
Q2 2012-2.9%
Q1 2012+2.2%
Q4 2011-0.0%
Q3 2011-2.9%
Q2 2011-0.3%
Q1 2011+0.2%
Q4 2010+1.9%
Q3 2010+2.3%
Q2 2010-0.7%
Q1 2009-1.1%
Q1 2010+0.2%
Q4 2009+1.9%
Q4 2007+1.9%
Q3 2008+2.9%
Q3 2009+2.9%
Q2 2009+5.1%
Q2 2008+5.1%
Q4 2008+5.1%

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