SYK - Earnings call transcript Q3 2017

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Operator

Welcome to the Third Quarter 2017 Stryker Earnings Call. My name is Andrew and I'll be your operator for today's call. At this time, all participants are in a listen-only mode.

Following the conference, we will conduct a question-and-answer session.

During that time, participants will have the opportunity to ask one question and one follow-up question. being replay is call conference recorded purposes. for This

financial results like you exhibit measures release call Reconciliations Stryker's can measures. in over that found we turn cause Chairman include begin, SEC. discussions comparable to the Executive Lobo, financial remind the the Form would I actual press could filings an most that conference Before the company's and Kevin the most are in with with non-GAAP I to during discussions statements. will Factors differ Officer. on certain that recent report GAAP is today the to directly current to materially today's call filed forward-looking will the Mr. Chief be X-K discussed will to SEC. Also, this include now

sir. proceed, may You

Kevin A. Lobo

Welcome to earnings third Stryker's call. quarter

Stryker's Glenn Katherine today Boehnlein, VP me Relations. CFO; Joining Investor Strategy of and and are Owen,

I'll update provide NOVADAQ we who VEXIM call comments regarding call, acquisition the of Glenn followed and today's along opening quarterly results, our our completed details open to Katherine, on then will Mako, comments on deal. Q&A. by provide recently For an additional the have before will with

previously performances in strong less impacted growth double-digit performance, Trauma our by issues, product basis as We and Medical both Physio-Control. Endoscopy, XXX Sage QX negatively weather points estimate from of sales Neurotechnology, approximately legacy reflected and standout QX Extremities, XXXX. as in our day. and Our challenges, versus the the organic and We of one growth X.X% well Mako, businesses benefited announced selling despite sales continued Sage weather-related and combined impact

for a the produces we you island are Puerto Instruments to many products Rico, and facility on Turning Endoscopy have divisions. manufacturing which aware, as our of

specifically With Against outstanding ramping like in our restore shipped while customer fund manufactured our being maintained to the disruption chain. respect XXX% and affected our distribution this I'd Houston Quality providing has employees and, supply and operations to and contributions and are and hurricane canceled island. recognize during work Rico direct impact had forward. the of newly globe with formed supply a Florida, minimal from financial employee unprecedented We is team Puerto material going pleased importantly, aid central managed stock preparation has in a and report can these we've given customers, how currently financial backdrop, In center our most contact to we our of moment disaster business take capital delays any that employees. of stored our up all we've we with U.S. through and some purchases. Puerto by of QX our there has safety aid the are to Operations extremely goods to by around manufacturing anticipate company. and and procedures continuity seen this the impact minimizing plans, Global The facility product the supply The through the hurricanes, not supply, do in the and organization matched were production, dollar-for-dollar Rico disruptions. deployment Stryker the from is

those business expect our in don't to QX. be meaningful any We impact purchases and and to procedures anticipate rescheduled capital

Encouragingly, switched September certain products commenced products and Turning ship other to August, we shipments recall we now we to shipping announced product Sage. have a of new during products began a In all of as hold from and methodology. families. a testing

practices. caused work to the disruption do their these with customers, events We have our given to

our our coming unexpected. were challenges a quarter that Given which share third Sage's of unique reflects value-add largely the presented teams market market position, the quarters. regain portfolio, their product we to number lost leadership with expect Overall, of over

around business able the continuity of needs Given diversified to meet strength of our our largely effective customers. and employees portfolio, globe, physician and we're hospital of the our planning the commitment

of look to med we acquisition deliver of growth the excited at the organic are tech. end deal, sales we NOVADAQ recent continue ahead and high help about balance the which year, to of we will the ensure As the VEXIM

We of the expect X% Katherine. dilution EPS full-year share, will per the now to with growth turn the I associated X.X% organic acquisition. $X.XX to despite to sales over and adjusted $X.XX incurring of added NOVADAQ call

Katherine A. Owen

announced Mako, competitive earlier Thanks, recent Kevin. focus will the VEXIM roughly were with on My in a and Starting the we which an robots, update Mako, of total acquisition during sold with in XX% accounts. the XX QX, U.S., this comments on today week. XX of NOVADAQ deal

to in Knee continue roughly trained exceeds Total update the the XX% on ongoing XXX robots now through with application training XXX which Surgeon in quarter, application, Total surgeries Knee robots installed Knee the the We the approximately Mako U.S. with third Total launch. is enabling field X,XXX the of since

approximately X,XXX. utilization year. And robot increasing total For the the to noting from worth XX% quarter the procedures prior approximately quarter, compared rates the TKA it's to of Mako on climb, roughly QX XX% that to increased continue third

received Mako since first With launched our of the XX% our approximately there's product Knee used three offering total knees Total offering, it's product clear over we XXX(k) that cementless strong with ago. surgeon be clearance cementless being years application. During QX, we our now to for interest with performed the

Mako study the ongoing. Knee for pain Triathlon. potentially function Total our outcomes scores, surgery building knee short-term had Triathlon Knee knees, for the fluorescence November, with we authors focuses in concluding Mako and reconstructive efficiency at implant Stryker's studies imaging surgery surgery. we to visualization which sessions And all our force. respect and article early are large patient well-positioned revisions. that array on provides and a market of at imaging with offering are Journal comparing Total significantly the the goal and remain net of and education number highly compared Knee to NOVADAQ specialties. reduce Stryker's Mako scores believe measured our Mako. with that perfusion complementary October, in our visualization surgeons share Knee augmenting rate meaningful the of The six of months published product of undergoing September, leading approximately OR SPY have technology on deal the robot customers developer included training our growing With we non-Mako improve with a and on knee Mako the and Mako total driving the At be clinical the for poster our first subject portfolio The blood meeting a committed X will a we led with platform, there trials patients the combined by presented of and sizing operative our using with better as over open and presence Mako by teams, Outcomes to with advanced may in completed integrated company's decrease of need Since inclusive of into achieve times We purchase with expanding completing Total front, clinical accuracy is traditional MIS in $XXX is million. sales (X:XX) We hands-on plastic the underscored upcoming total September, reducing time, this gains. that sales by surgery KOLs believe NOVADAQ, physical instrumentation Knee a with On such experts, undergoing customers. in invest continuing the acquisition in the fact for statistically Surgery. in applications to total clinical the price for is in we with satisfaction, to flow XXX of measurements patients of three versus cross-training matter open with were are studies products, the our database

We also sales finalized XXXX our structure.

combined to to synergies sales standardize advanced our customers, team portfolio amongst this imaging on identifying portfolio. actively to quotes look as collaborating are We full the and they

Beyond impressive the research has NOVADAQ and force, team. clinical extensive team an sales R&D

market. the about long-term the to advance excited are opportunities visualization We

As more track target we XXXX neutral and detail, accretive expected with with NOVADAQ Glenn thereafter. will earnings be in our to financial remain to discuss on

with and for SpineJack expandable €XXX this is I'll of plans the company's tool prior week, decompression progressing, augmentation, diagnostic disc million. in acquire vertebral earlier vertebroplasty and of to is specializes whose along Stryker's procedures, sales approval SpineJack a business anticipate to the compression system fracture innovative highly an for and with extensive company's was Glenn. million year. that, and development VCF is interventional advances for an stabilization. the contained division XXXX. product ablation for include flagship herniations. vertebral the filing to we VEXIM's of call and over And announced now The in XXXX, €XX.X implant mechanical for radiofrequency XX% sale the a products VEXIM, spine we for portfolio fracture reduction of key clinical over which turn and portfolio Instruments system, XXX(k) trial Lastly, The complementary treatment VEXIM solutions had in which the increase

Glenn S. Boehnlein

will comments for growth our today related Organic the was on Katherine. release. today's Thanks, the be results results included press financial The quarter have and financial performance sales detailed My been data X.X%. drivers. and third focused in quarter

included one As day, selling reducing reminder, by X%. roughly less a this quarter growth

the prior had year, we've our the Pricing X.X% As from performance sales. currency selling businesses. unfavorable on the in capital previously on stated, of while have quarter favorable not days do an generally impact was a impact X% foreign

evident Neurotechnology impacted product organic we action in that negatively Florida. Texas the U.S., the hurricanes which our momentum During events continue MedSurg good Sage negatively see segments. sales In X.X%, were and business of XXX by was our to and sales overall growth growth organic basis quarter, the These sales impacted Orthopaedics, by and interrupted the points. within with

were points. matters aforementioned organic the sales basis by impacted product Our and U.S. XXX action negatively by weather-related Sage

were Our Asia X.X% day. America. and solid Europe, international highlighted impacted was selling Latin in organic by of performances one All growth by geographies sales less

per year, in sales effective favorability tax Our of some earnings diluted our the $X.XX from adjusted increased volumes X.X% reflecting quarterly prior and rate. share strong

third anticipated, quarterly share actions, impacted our not currency exchange NOVADAQ, account product rates. was significantly we share. that negatively earnings was diluted EPS, by foreign into per the Taking Our impacted of adjusted estimate by quarter impact and weather per Sage the $X.XX as

our a provide U.S. many number delivered and some predict organic result in Orthopaedics We coming availability We the performance. of growth as of business organic significantly organic segment Orthopaedic Houston experienced Now Adjusting months, these I QX. of the X.X%. weather-related growth growth had X.X%, in hurricanes. hip X.X%. of quarter, rescheduled constant scheduling growth be of will anticipate X.X% the U.S. in more currency of and in our cases but disruptions highlights of Florida a during will including procedures for knee and cannot canceled around

performance Extremities growth U.S. by and the growth highlighted of was at include disruptions. X.X% and Trauma rates X.X%. weather-related These impact in Our Knees of

organic delivered our included included growth of strong Foot Triathlon our growth of Ankle quarter products, for markets. XD-printed XX.X%. results constant in in robotics continued X.X% developed We group Orthopaedics see and which demand in and our and our growth Adjusting growth all and had knee the U.S. across continue MedSurg international and U.S. Mako currency performances X.X% to of strong to organic a steady disruptions platform. portfolio, for the the our increase organic Sage-related X.X% product with weather-related quarter, of MedSurg the actions X.X%, have

organic waste growth had business ramping Power management continued by as good U.S. X, as including Instruments business, Our highlighted of X.X%. of newly our of Tools and is performances sales Sterishield launched our System our products. This well growth

also with had but strong booms not demand sports XX.X%. reflects medicine strong only lights quarter, U.S. for and Endoscopy continued growth business This another organic and our video XXXX sales of platform, implants. Our

the During growth was Endoscopy during acquisition U.S. its the this NOVADAQ sales acquisition, XX.X%. Endoscopy Technologies, quarter Including of Inc. completed quarter,

in organic of organic decline was our reflects Medical is underlying the Our business MedSurg in of which impact as in of acute discussed continued sales the primarily and Medical's sales U.S. growth with growth growth well This and cot previous This Spine X%. a to matters. reflects of previously growth had nominal Medical's Adjusted include Neurotechnology these Sage Internationally, strong XX.X%. Europe. businesses, had care, Physio growth in growth U.S. matters, QX related impact organic which weather disclosure, X.X%, our Sage constant currency product for our line primarily action, power reflects U.S. as robustness had businesses, and organic products. across Medical strong core which EMS and structure X%. sales

is in spine continue by strong We offset see which business. our demand to products, Neurotech softness for our global somewhat

products and the U.S. strong for and stroke instruments. for XX.X% demand our Neurotech quarter, growth posted ischemic highlighted Our CMF neuro-powered of hemorrhagic by products, business our

by of softness many strong Europe was business demand is XD-printed U.S. XX.X%. Spine Our areas, which high product products. products performance driven This demand offset Asia. organic Internationally, Neurotech spine growth continued partially to across had in for by for Neurotechnology see and Tritanium and our our

for third quarter. Now we'll the highlights focus operating on

the unfavorable price because was in quarter, declines manufacturing margin adjusted our basis impact down and an Puerto disruption XX from of facility reflecting Hurricane XX% prior-year to the gross points the Our from Rico Maria. of mix,

with to of continue in sales. R&D invest We spending innovation X.X% of

Our was the quarter. from reflects impacts also of NOVADAQ points acquisition weather-related of basis Sage up consolidation XX quarter. and matters impact product SG&A our was during related from adjusted This XX.X% sales, the which actions, the the our some to prior-year negative

was and matters basis margin on Additionally, operating we were from the CTG adjusted continue XX.X% our XX the In our and XX.X% points XX which to The is in points. prior-year expenses prior-year implementation, adjusted invest summary, In Mako TKA sales, quarter. our was from down compared to total, and operating program, approximately sales ERP of weather-related XX basis in quarter. our impact our up basis including margin NOVADAQ points adjusted platform. operating Sage, of

As impact basis related relates expectation, we and margin excluding improvement. the full-year continue points XX one-time our of NOVADAQ, Sage, delivering to it operating weather to to to XX the anticipate items

expense increased interest expense. I other Other the income and primarily some to income will Lastly, prior-year decreased income. highlights quarter, provide due from on and

tax a accounting, third expenses accounting well in in tax benefits larger-than-anticipated the tax rate changes fourth result anticipated with that, an quarter adjusted of stock geographical reflects rate changes rate for Our from quarter, geographic effective the compensation the change aforementioned of and full-year adoption in related effective benefit XX%. XX.X% the as XX.X% income to of the in our In mix. range to in operational benefit combined other certain will will as

$X.X the of sheet billion. debt end and marketable balance $X.X of the was of Focusing we the with on the to Total billion the continue outside balance U.S. a held position sheet, securities, cash approximately XX% maintain which strong at on quarter was

million. cash cash outlook will anticipate full-year on in quarter year-to-date Based to recall-related to payments from discuss we remainder guidance. organic I Turning $XXX flow, of This year, of our performance was and includes third the X.X% approximately past the to be sales $XXX our of the full-year operations our million year-to-date. range now And our growth and for X%.

If hold fourth sales net the fourth by we days have currency foreign year reminder, current be selling exchange will X% full the and levels, year nominally selling a amount will As quarter the has full positively XXXX. same rates as The of one near less the to quarter expect impacted be day. in impacted.

fourth on share expect per We related net in expect anticipated as diluted adjusted our of quarter of NOVADAQ, including per we now range, year. well XXXX the August at dilution the $X.XX outlook, the of we'll earnings in a in the to of per $X.XX negative actions strong our share. $X.XX low the weather the impact impacts to recall, that Based $X.XX the net respect Q&A. NOVADAQ. be adjusted outlook And $X.XX of up for we in share, recall the acquisition per results, end $X.XX to to which year-to-date the and open Sage related call of product dilution excluded range to to EPS $X.XX we announced share With related on planned full now revised our earnings as disruptions and approximately to diluted come in to $X.XX when $X.XX our to Sage the

Operator

Thank you.

of David with Our Lewis first comes from question the line Stanley. Morgan

proceed. You may

David Ryan Lewis

a to here. Good Kevin, want about, afternoon. growth obviously, I talk for second

organic, best represents seen think, we've perhaps which you in I out number, years. is adjust the still your I if impact, growth the weather even X% think,

and I I XXXX. year, on Glenn. you I'd you sustained momentum you're share know to your for going strong for year was guidance franchises? could where where just growth broad if just about just in improving this wonder I some give some commentary. follow-up across you And touch a have some see you briefly know of quick the thinking into see next not quarter. key MedSurg Then strokes So But broad can next

Kevin A. Lobo

impact. pleased if the at Medical David. which business, thanks, the very you had Sage with the So, We're even division, obviously underlying look

double-digit strength our our We strength legacy about And The very in product growth, Physio-Control our had strength in we it and was Extremities, had feel a number in very Neurotechnology, other new businesses core business. really cycle. areas. business of Medical whether or Trauma strong good momentum,

As deliver the at know, sales you it tech of single by med I'm going varies not through to division, end should high division. would to continue to but every I go us you going expect forward. growth say

David Ryan Lewis

Okay. And two merge maybe just them there here. I'll together follow-ups,

Sage, about obviously to Glenn, about momentum year, back growth if dilutive, Mako think the about important if think negative. no to and move on longer with for I queue. how then of we this as NOVADAQ you Sage and wonder gets halo, much into about earnings versus and accretive, that just a us somewhat how follow-up next piece next FX you go next versus in And accretive as share be FX coming Mako I And year, should a to you. can year? those Just year, competitive is growth I'll from the cementless for Orthopaedics XXXX? NOVADAQ, positive of think headwinds, Should the jump in Thank thinking is, Glenn, swing $X.XX-plus cementless is knee disruption, slight how may some headwinds

Katherine A. Owen

for limited of into three-plus XX% installations. success the we've I'll is years. to competitive After take the It traditional robot start. to low-singles benefit continue tremendous volumes the thing continue see of used the using And of rates release once the is first quarters. surgery have start mix. getting And robot Mako get that for had our number ramping. which to It's had over do our they We've implants effect. the whole they of Mako accounts, a I the from is will the procedure believe halo we our to about typically, past portfolio, the a to success. question. XX% the would UNI, conservative bulk It's ramping. Utilization climb Triathlon say Selling it. are we very to of was are tremendous start

our an in I the Knee obviously, to driver our key comparable portfolio say it's material, in growing faster U.S. mentioned, non-Mako that obviously results the times about it's, We're but it respect I than more has in accounts. of with portfolio accounts. Mako. becoming impact, Mako the as But So Total wouldn't four

Glenn S. Boehnlein

you op not that, yes, it I and about but this will think was for assuming as we're we're David, dilutive in guidance can next year. margin, effect have will year. comment and giving $X.XX XXXX, be NOVADAQ no And that

So next essentially for flat be it'll year.

So, a of little bit that's a tailwind.

Sage, continue but ramp, as our anyways. immediately we where anticipating we're relates it will that to QX As going margin. that in we'll of a its to and the away most able goes we'll then, weather to not Sage up feel to impact sales mentioned, previous reach relative make to one-for-one levels to And hopefully operating it's be

Operator

line Bob of Our America. next Hopkins the question from Bank with comes of

proceed. may You

Robert Hopkins

the Thanks and congrats much an lot for question quarter. pieces very on Hi. of taking this There's moving outstanding quarter. a

just couple thought I I of questions things. a want for my So clarify to

math selling the gets mean, the shy X.X%, terms growth in of days, company, revenue and all, of just my of First of to organic just you ex-hurricanes, growth. X% Sage I

these close you're up X.X% quarter? accurate is, my when all I add I that numbers guess just to first So that is question this

Glenn S. Boehnlein

X.X%, relative X.X%. hurricanes X.X%. Sage and X.X%, Bob, to day, less impact takes to growth get a you And X% organic one selling estimated you if Yeah. you to then of of

Robert Hopkins

That's quite number. the

really that's do just Because on same people Can is question second we on things. again clarifying two something – just focused on. exercise obviously that are the growth? knee So,

imagine for more selling currency So more I and would X.X% knee like X.X%. was like weather. constant the points – day was it XX for knees maybe then growth impact was basis

kind we of the adjusted closer was knee X.X% growth X% So, to than see?

Katherine A. Owen

bps some businesses, It And more probably were a really about is XXX impact have from Your impacted and business has around which XX%. around XX Trauma of knees Selling days our to right. the somewhere math hurricane. then on capital is basis pronounced points. on an recon impact the don't

be to in we suggest business those at seeing for So We're to anything We factors. results. you when changed. very share. the or seasonally quarters, has tends growth anything market the adjust taking We stable. with see underlying need seems of trends is else's noisiest need our QX, weakest believe obviously not the knee quarter but four-quarter everybody our know, as to we're look rolling you and to

Operator

Weinstein Our with next question JPMorgan. comes from the line Mike of

Your line now open. is

Michael Weinstein

pick knee on let Thanks, And everybody. me up just Bob's business. the on question just

and basis in is adjust not everything, is quarter, to the this So, business, easy reported X.X% the knee hard it's if this growth with the which a quarter. an for try comp. U.S. on we But and year-over-year do here

the And you Mako? adjusting that indicate I'm And from with trying bit day quarter Let's say X%-plus a having does noise that not a higher Are you're purchases. selling of Mako to forth. and volume it's it X% Mako or comment success that's lot users? existing given the for early and on surprised from the so is in the the little separate of volume weather

to the in trying Mako knees? quarter the just progress U.S. all relative in year-over-year So, growth this out tease to

Katherine A. Owen

seeing XX% year utilization surgeons year-over-year; each rates they of of the We're number their Thanks, the done. training, and pace surgeries which to metrics, this number Yeah. different increase whether not We're it's up being quarter also trained, looking at the of that. a continue Mike.

change underlying or nothing hearing us market It's around there's hip of lot quarter suggests seeing we're quarter-to-quarter. quarter? prior of everybody's I possible. right, numbers the we any from incrementally parts. the to than be and These And that at or Could day, the in to an So knee in a numbers. dynamics. think, you're But moving noise quarter have this there's our end see obviously field and wait customers weaker move

strong as to add that's other something that comes put a degree if case, And slower, typically it anything just strong think up really I like in traditionally sequentially in as the I opposed and don't that's and if to a the what's knees. just numbers else. hips it seasonally than QX bit does, So, fourth into looks noise quarter it the quarterly

Michael Weinstein

Okay.

Kevin A. Lobo

very add knee our of combination about forward. just getting and cementless I'd because robotics with can feel so I will be we as good the we're going the printing that approval Mike, Mako very about XD excited market well, Yeah. that believe we powerful business and

Michael Weinstein

Understood.

a picked months. a Katherine, just continues this The quick that million in over your sales Sage the couple do course of Is up in for was quarter. in $XX points follow-ups. whole you we of And me what's that Let that driving headwind assuming of Sage of ischemic lost you kind last that you that just front the had of quarter number the therapy all? some data business? the shift picking kind up are you? Are well. suggesting up fourth do six guide stroke the endovascular of to consistent? for Is have Thanks. the at steam still What quarter Neurovascular then second, exceptionally picked

Katherine A. Owen

Sure.

we it's in at vicinity really on revenue probably million-ish have to quarter, to doing. looking quarter maybe little fourth million of be think $XX south in the So, and in see how that, we're also $XX the about in Sage, going lost third the but we a

good of that back We the then and approximation. on strength that really back team. to good tends move with the strong some really it leadership in that there a around our And quarter-to-quarter. customers. annoyed really think the pretty Ischemic do position work But, ischemic. shipment and It's win have growth, do to issues. data helping them see but We given business by business. expand continues to business, again, these But that's Neurovascular portfolio, healthy to we we'll bounce to hemorrhagic Sage's and probably win really both and does that is momentum, execution out drive continue around. But clinical double-digit increasing we recalls

So with now. Neurotechnology business where Neurovascular, we're the right is really pleased

Kevin A. Lobo

performance. Yeah. We great had also

themselves neuro-powered business at it's They geographies. all you If they fire. the across also global or look performed to getting across a whether run and But hemorrhagic well. entire on they portfolio, ischemic, and are very Neurovascular, it's it's our as instruments, absolutely back

Operator

question next the of line Our Taylor from Matt Barclays. with comes

proceed. may You

Ian Mahmud

on This Hi. you is for Mahmud Ian Can me actually okay? hear Matt.

Kevin A. Lobo

Sure. Yes, we can.

Katherine A. Owen

we Yes, can.

Ian Mahmud

Okay. Great.

in your strength there I'm is market, you just your essentially, overall give seeing level view take high some the for prepared you U.S. softness team your hoping So that spine on the could in in on was quarter. remarks. mentioned us what spine field market the and your

Katherine A. Owen

Yeah.

all to so There's I based continues of hard gauge were spine results right But market exception. either We've challenged, and others. or market. be a market to the for challenging the it's that pricing the think it's or that's on today the private, no got pressure. little pretty ours for it's physician-owned clear XX% us now about market PODs a and

near We in spine Spine Interventional IVS, growth. traditional business good our recovery up to putting our are doing some well the be business big we're term. continued they're But as challenged, and not any assuming

Ian Mahmud

or Is side? share terms follow-up, there the in as a do share? you you're movement think losing of And gaining on rep just

Katherine A. Owen

the line probably don't way the in we're much one I a market, think I think give other. with there's pretty or or discernible take. trend

Operator

SunTrust. question comes next with Our from Bruce Nudell

now is open. line Your

Katherine A. Owen

Hi, Bruce.

Matthew Keeler

Hey.

me Can This Matt Sorry. I was hear Bruce. in on is for okay? mute. you

Katherine A. Owen

can. we Yeah,

Matthew Keeler

Okay. Great.

updated to Was to on trends on or that the the you wondered the all, from increase it the the of seeing you're guidance, it numbers? caused quarter to fourth strength give of some us quarter from more the – what can was kind those you that X.X% just revenue changed third in X%, there? in first X% more end low color going to perspective, if Just, to just of a back X.X%

Kevin A. Lobo

Yeah.

off very us broad guidance understanding much of numbers. just know strong seasonally all think for thing come clarity a and strong is getting play businesses. the of – I a is And the and will our out. think very of gaining those a in look at first how is very formulating we around very Closing it coming where more into across then a QX Sage also very, was lot that we all, that we're of helpful helpful is on final NOVADAQ us QX in will terms our swath of closer

momentum, specifically in products we that some product to good We also launched, our continue. expect that have and see newer of

in us look think I of a get to of the up that the better out. So guidance rolling is confidence where sort our at coming all numbers gave to

Matthew Keeler

Got quarter. then the And the in just impact to on storm an it. That's to helpful. earlier a clarify follow-up third sales comment

was lost that release helpful didn't cover see was. to thought said you and you be think material on is benefit would You guess And material said a that be that in there you sales. that press of XQ. capital how come I equipment, you Why my much wouldn't that is impact the to expect But material? procedures, some it in back a you guess might and I there the

Katherine A. Owen

It's big enough. to surgery not in come all the patients. It the quarter. on the back for schedules fourth just surgeon, not for depends going It's

given or any think so, and our can fourth to overall quarters, business magnitude, or the not manage our see. overall in wait just through come back, over of those And whether we we procedures. quarter strength the few to have we QX it's all And expect we'll next

Operator

next line Bank. with Stewart Kristen of Deutsche from Our the question comes

You may proceed.

Kristen Stewart

the Thanks taking Hi. for question.

the NOVADAQ? go follow-up the What the gives perspective, to the top a on line anything embedding on with you're now confidence confidence the Is Just with bottom-line kind in you of or the guidance. it that just dilution range? From changed dilution. in the

Glenn S. Boehnlein

Yeah. Kristen, on NOVADAQ. there's no the change with real dilution

historically we have not really, seen just QX. line in I just in just of only QX, we're expecting, strength the but and top that and typically think, the robustness and what

allow impact. that previously And cover of really to of things thought these we would some have so, that bigger kind a will us

Kristen Stewart

you. Okay. Perfect. Thank

Operator

Our line next from Piper O'Brien question with Jaffray. of Matthew comes the

You may proceed.

Matt O'Brien

questions. Thanks so much the taking for

that that to from growth either I start the comment you're the you seeing made Kevin, procedural on Just perspective. a think Mako or off Katherine with

said, faster? knee that you Can grow of growing accounts. on that you're accounts, think Xx other business is so many customers expand at those more attracting those little going it so other that? type Or I the bit seeing Is you on driving growth? much some dynamic function within there the are just of a patients just they're a that's

Katherine A. Owen

be on done it's robots with it really robot, of accounts. existing a putting we're they're fact combination to Knee. And Stryker think a I doing into procedures that if has the the Stryker

robots. replacing So, that have taking that we're below we no more means or accounts, inherently been our and average. consistent it's of very where XX% market competitive about the share that's business, either to going And well of be

Triathlon all And whole robot. selling be done on And business. the not selling just it's the so, that's new portfolio. It's to

XD-printed cementless incredibly has been offering product successful. Our

codes Our us to and XD-printed revision capture sleeves, revision that enables implant the business.

it's us non-Mako. the deriving increase to the that allows combined in So Mako versus really we're really accounts effect revenue

Kevin A. Lobo

And Europe. story story in same the that is

business. outside halo growth the effect United replacing we're our kind of also So We States. and knee same robots overall in get

Matt O'Brien

then a performance on And seen and again your stack follow-up, best really helpful. the at difficult as that the a model, this years. That's of strong think, the Trauma quarter business with this was look couple you've that business tiered of my comp. is as Extremities I in Okay. basis I out And last

of how is momentum do So there juice specifically then growth something there? driving that level And have continue improvement business? this that out or of much you to

Kevin A. Lobo

fantastic almost a five that's been going this was back years, business And quarter. a quarter-after-quarter. it market outperformed the if you has year-after-year-after-year, Yeah. Look, recall,

last years, a And The quarter. If up back but Ankle put regularly up posting you across quarter. terrific the growth. really we started board. the and so, double-digit terrific at If to were three I or a look year they catch it or us, was Foot comps go with two had

was Trauma Shoulder core and our very even strong business. Our business

from where fruit this that. our portfolio, So we're bearing we dedicated something we filled product we made sales reps. we a of out is focused, and investments, lot

just wouldn't could point one it I thing So be to.

specialization, I of really it's more And been momentum results. think driving increased focus. years, terrific number building over it's that's more just a

Operator

question Our of Pasquale from Guggenheim. line comes the Chris with next

You may proceed.

Chris Pasquale

this back expansion. the flat to as that one-time so, about And margin me from math full-year headwind If operating comment through XX-basis-point if get it you're months I you of XX- here XX-basis-point do year. Is then to first for well? your I that the the to to nine circle your improvement? Glenn, underlying on adjust want items to just quarter, like Thanks. looks how

Glenn S. Boehnlein

Yeah.

actually little it's close I think we're to maybe flat. you're year-to-date, a but up right,

investments, are it that expectations. quarter I leverage of range be growth also the CTG to benefits those the that I in year. our year. We'll strongest the full look sales also we're XX expect which some If typically basis in we'll think weather, contribute NOVADAQ, from our beginning margin, excluding And will greatest impacts about see back Sage, which think the year then not to and think in if sales to this QX. and that incidental XX I for of points the of happen with amount every QX, Also, you will is go to at generates our single of

Chris Pasquale

And institute some is as markets of than business you for just hear Kevin, updated evolve, smaller your Okay. thoughts particularly your some they a new going strategy also in love are EM it emerging is forward? piece your markets regulations there the competitors. and But to some to these China, going of of think the on then, how

Kevin A. Lobo

Yeah. India. a of bit grew with good growth had emerging that's It markets. and we in Look, high-single quarter digits, negative from at a

But, markets some for future, know, market that a very changes you making. knee for impending us, was around had important the As price controls which us. emerging overall, they're the severe they growth. even implants China, hit high-single-digit with a is

we're We have of implant of China, excited And share, especially for couple have about, making to market quarter changes. low and contributing we're a very a a year starting and very this who's business. new our is leader destocking. of very, China years lot we after a this actually growth difficult in

we're so encouraged. And

are of important We're markets the of challenges some emerging markets, very We of temporary going to the a be to patient are approach. committed there other bit markets. and to In a big things, spite nationalism related long-term. going take to

make invest to then growing the to we third going appropriate growth. continue this quarter to year, But for the sure in to quarter. right a been had fuel we of So the not make are money. place huge going amounts us good in again But it's and have investments channel we we're and

Operator

comes of line with question Stifel. Wise from next Rick the Our

may proceed. You

Frederick Wise

Hey, Kevin.

that, cycles, segment growth? early to Is advantage impact And fully the potential positioned that new sense Physio-Control. saw underway in gotten take I is you're very haven't with and where something that part are defibrillator Let helpful? U.S. could us suspended recently each and you product of help my Philips some but as me Obviously, start on on you're understand in maybe of be the production. we Can business. of

Kevin A. Lobo

Yeah. Sure. Hi, Rick.

it terrific quarter in a lot was Europe. really of benefit, had Physio and a So,

in Europe third but So AED Europe. has in pending launched their in not it been new Has yet, been and been the launched did well has very, in quarter. approval, U.S. very the it's launched

that's well. our been has globally. new which very But X, have device, we yet the launched And launched LUCAS also manual haven't CPR-assist performing new We a defibrillator.

in look And the the like is I new that not So cycle, every sort that to other say the performed something disposable. to certainly product quarter. relates benefit very so at something all use to well – of we're in would but this need Sage, purchase, look, it's as the early in players it it's third think business capital going But Philips, day. They which is market. single I those you a has

defer can't procedures. You those

along the we stand benefit with capital business. market. market players that a other shift to would than But do quickly share So, large in much more

Frederick Wise

of more might far? quarter capital launch about need mean, any side expected, thought I'd deciding? is mean, would be to And the are on system from than talk what if or it related have what upgrade? hear ahead experience again, faster curious be was, And color despite was you availability was maybe just I the might people the plan, just learned of it on welcome. Kevin? Just, and you to ahead And how one in as Thank I so it a follow-up have you have terms you. Mako, if your decision happening to making, of the me.

Kevin A. Lobo

well even whether doubting with here the good you've And which robot as no quarter, And was We've third hiring of expect our Mako. robotics, pleased seen, to every well. the It's It's of I job get seachange terrific we tricky We that's issue and do is robotics. have year with getting trained. The as to Demand continues robotics one they Makoplasty performed extremely a exception. capacity stay. a-year-and-a-half a ago. quarter a pipeline. issues. would And as been on this question specialists, Look, are selling Yeah. versus when say, the that a Thanks, was challenge all or no put don't we about a knee Rick. our two strong. very any capital. done completely we've And upgrades very momentum surgeons only board continue. story now on is the buzz to And changed. real team. new the of years have But be doing performance has of manufacturing I

So people alluded prepared fire. clinically, think in to to the publish we that's as her as remarks, I start seeing And fuel value tailwind think the of the Katherine going only of I to this.

well. So, to disruptive would really future, seen other the this one you've healthcare. parts to take of say while about extremely team – the hold take And starting little very take there's dynamic. and continues bullish I a new to as hold, that's no is is in execute But this technologies now.

Operator

Wells Our Biegelsen question with Fargo. next from comes Larry

proceed. may You

Lawrence Biegelsen

question. Thanks for afternoon. taking the Good

you the pre-recall can quarters. you say coming think bit a could little on back you to earlier the heard get specific to you had when expect one I of more question guess First I recapture I you that And Sage. rate? share follow-up. Kevin, run be

Katherine A. Owen

Yeah.

with, we're think early. pleased pretty I that all really we're just resumed in just September. and We shipping started which products,

And so our see I to have customers react. to think we're going how

We have work do. to

our that, more to get believe when we're happen QX. little force And are our have all in discussions to but comes it's Our sales with do going more going back. all then focused bit a it'd don't customers. regain to share. We it start just and be time we premature lost belt under the can on speculating believe I

Kevin A. Lobo

Yeah.

back, at roughly Just look year if guide, and a previous this us our but took all is came how just it business. as Neptune as of you regain a prediction, guide, a that not right, a and to

Now course that has component. capital a of

have But won't happen not how executing, we customers very one quarters, it's but is two won't regain to have were quarter, in the the in pathway with they're that this a performing. believe So perfect we analog, but happen a business. I'm excited upset. how team I do it

that entered don't that contracts have XX days. in into We customers some have expire

And to regain have the to we so work business.

Lawrence Biegelsen

your much you when and to business spine start I there, your about that spine then business again. And helpful. and but market comments That's not the expect heard positive earlier on strategy turning the own

questions. Thanks So, color taking be the there for would helpful. any

Katherine A. Owen

challenging our got Yeah. to work right market back I core us will invest I to clearly want that and our business to to spine continue as the good going or in We're sales mean, when do. it's has be pretend market force. the we've pipeline growth. visibility R&D a now. invest And to But don't to in

go. to it some assuming we on speculate returning to where think growth we start of need see I momentum challenging will So before we're and evidence remains

Operator

Miksic comes Our the next question UBS. from line of with Matt

Your line is now open.

Matt Miksic

just Hey. upgrades Thanks quarter, penetration taking the XX% launch. congrats to on get for especially, our to at questions Mako. in impressive the for a this point terrific on and It's

we U.S., wanted and So sure know to this impact we right. impact. closer headwinds so to point, X% I storm guess I given that, had sort look and it's primarily the at adding knee U.S. growth. one I then the follow-up in on like U.S. X.X% just I or pluses to If growth like X.X% the something of get the make on, and was Bob's of figure,

be closer Just X%. growth to would to approximately sure that make right? this looking seems way, Is I'm X% math it at that the right like than

Katherine A. Owen

Yeah.

split probably isn't difference. I – science, and the but again, perfect this think... we the We we'd think think

Matt Miksic

Sure.

Katherine A. Owen

business ...the hurricanes by days a XXX-basis-point impacted our about joint knee impact U.S. Selling points. business. our XX basis have on typically

you if and something think between you organic underlying at true was. X% add our that knee U.S. X%, so, get And what that X.X%, and the midpoint that's to we growth

Matt Miksic

then the feel knee of on systems But, budgets, mentioned about going combination the fourth around how of Mako growth? of a of in time of et the Obviously, capital And like interesting that of to is the One that you something question. Regen interventional investments significant Thanks. beyond with the and business just you the you reinvigorate terms quarter? and more for side question of acquisition. to the spine, horn it. on I table? And as get seasonality of Is in into to could, launch SpineJack your second love here sort do we Got need part (XX:XX) should unrelated, addition. R&D the sense kind cetera, heading on first that, fusion terms think the sort follow-up just to Larry's the there if to

Katherine A. Owen

Yeah.

that So like right cage, on could understanding I'll the group with had continue the there. evaluate spine product the to take focus first. one great executing really our portfolio. is opportunities But to our success XD-printed augment have. We're dynamics, the but there things market the are going of products issues We've now we supply

execute. really And challenging team – to a needs And so I this to as the is mentioned, market.

capital. magic near it's some within VEXIM I Mako, then, fix of there. been momentum where they've terms good So a into business really term. And in don't Instruments actually seeing see the The pending deal, pretty IVF that goes

the the million And up is So strongest board, year-end. looking whether different. don't their Ortho. $X anything budgets the the I MedSurg to (XX:XX); capital use by or robot, across it's anticipate business Hospitals QX are typically

go that Flex a Financial Group have options and like. the them lease and We with can on work in

seasonality with typical capital other see have the robots would our assume that businesses. I we So

Kevin A. Lobo

Yeah.

success lumbar Tritanium as think Serrato conference as Just interbody products which and launched at we've I we C, right a very that screw. presenting that space, cervical space in we're XD-printed well great we're a pedicle now. new excited add is which spine, which our is on to have had about, new NASS easy-to-insert the couple the of the great

We of obviously terms do our we in have portfolio. new of do ways to at augment for the And products. around new of innovating other like look always, we'll a division, more course, to products. couple So, every

Operator

Our next with Ro the Goldman of from comes Sachs. question Isaac line

proceed. may You

Isaac Ro

Good afternoon, you. Thank guys.

competitive compare-contrast that could landscape Mako. regions. showing was types two the with what of versus in physicians between the regards interest So, Europe on and I demand, U.S. another question hoping are you the you're seeing to

Katherine A. Owen

look placed, utilization for is when champion what game ramp, the make is – seeing. really robot sure which see It's where same. a the the is we're that to to there's We surgeon plan we're going

different in It with a strategy our target identify really there the we geography. right in is. market. isn't S., the by is how of U. varies who biggest the Obviously, U.S. XXX So terms

Kevin A. Lobo

Yeah. know. in as And one I'd just Europe say, you isn't Europe, country

not areas very the So some category as Italy. the attractive. say Those I'd countries be attractive most some there and that would attractive. that Germany, And attractive the are UK, probably are are are three

momentum. has Europe. want to other to They're starting And data little interest doing wait they in going And surgeon pick publications, seen robots of longer. will certain as adopt. is before the But a same. a like just Australia, to again, slower adoption. pretty more are very see – countries fast technology the already which we've start this well some some large The we're We're we number of to countries up of to like take in more countries type place to with adopt than Canada, do and a

Isaac Ro

point, expansion then range real forth, articulated. just previously And so here be more would like? the of a you with versus on about a trying on the of to at you're to the If what Thank looks parts deals doing the Great. a think business bit And that side. opportunity you expansion will with work hit efficiency. the year some margin as you and normalized just of be follow-up an the as margin the end can get you. cadence some least the what to of give for sense little I the to at exiting higher have maybe you the what able us, imagine update would Because moving for some Glenn margin the to M&A I give

Glenn S. Boehnlein

for fairly expansion ramping to over five-year think the range in I and expansion back of when more each sort of points a earlier transformation XX the to XX XX of points like margin going Yeah, talked about program we of XX time. year of And year, included cost points of And first a to that introduced period That basis a that, basis sort we'll it we margins, growth basis I QX done at significant in quarters than more pretty really, revisit the beyond in guidance when look of historically year. you year. operating And we give guidance. three should give at think we've latter good sort QX the you for can what which is XXXX. in

Operator

comes Our of the BMO Wuensch Capital line from with next question Joanne Markets.

line is now open. Your

Joanne Karen Wuensch

hear okay? you Can afternoon. Good me

Kevin A. Lobo

Sure. can. we Yes,

Joanne Karen Wuensch

Two Wonderful. questions. quick

us equipment could environment all, update looking you of is capital an give what First please like? generally the

Katherine A. Owen

Yeah.

really business, good double-digit posted for growth changes. at about the structures legacy not double-digit that's any there, growth our That's quarter. are seeing We capital seen you all I we've you costs, and feel numbers look the capital. if medical QX, really now. Physio. know, right We market strongest seasonally Medical, capital and for is our as

Joanne Karen Wuensch

because also I about you have so how spying then I a that to robot? and this And thinking Excellent. ask are of question,

Katherine A. Owen

as the that's think about number a we Mako, think, knee the right I really and focus you joints, beyond applications but of there's hip now. believe

of very a and hips have So are the really have right. other going also think successful only now, opportunities But there's get this trajectory at and we do feel because opportunities believe to on ensuring pleased other And we launch Total and areas. Knee. But there. one there's we be do chance of with to outside looking that that spine right in around the shoulders We we will we we really knees. be applications focused

Operator

question line RBC next Novarro Capital Markets. Glenn of the Our with comes from

You may proceed.

Glenn John Novarro

take are hips with and one taking fact for you the from the market, the that one production. take number But I the benefiting out in when weather, still Very guys questions. you Thanks less struggling selling if out day. also and player you're strong when Hey. they knee wonder their output

how you you And if on struggling. a bit talk about from wonder one more player environment little still one number competitive are Mako. I the much and So I can follow-up just the had benefiting the

Katherine A. Owen

get we for need working. is strategy to Smith I is our wait can full quarter. to tell & picture What a It's Zimmer, Nephew Yeah. the difficult. report to We in you believe

Our gains. on share accounts, competitive there specialist, investing sales in is Mako, in this our Mako targeting force driving investing focus

we do may better once So, sense we're this how to plan the because have get around of And going challenged well. market stick believe has working shares a it's be to moved reported. game market, everybody regardless we'll in who

Glenn John Novarro

that Fair are in then the enough. quarter, sales us remind these outright XX can the versus sold robots what leases? you Yeah. percentage And of you

Katherine A. Owen

if more purchase. But sales. – outright leasing lease. sales down don't offer the majority they and are it tend to walked options not they're We The through We even often once through break Financials. option, leasing between do than Flex

So I'd say the majority are purchases.

Operator

of question Kaila Our Blair. from the comes next with William Krum line

may You proceed.

Kaila P. Krum

Thanks, guys, for taking questions. the

spine quick Mako. a one on So, then on follow-up and

the forward, be to for talk i.e. enthusiastic of areas dynamic your going strategy the about on spine I has that But that maybe So impacted on little heavy you about can overall a has softness beyond changed know your market that understand more more just area negatively market, is spine? how it strategy challenging, commented bit VEXIM within deal? I sort concern your of impacted less and or continues there. investment the guess, more big-picture you in and the need or certain to Or that appetite investment sort

Katherine A. Owen

the tremendous did important like market. There's challenged. the you, our to are of we're inevitably years, believe tell that we have and products. to innovate would XD-printed Throughout to businesses it's committed We opportunities I an with Orthopaedics. spine continue unmet we So, part need more

at still enough, more going China to we happens challenged. eventually particularly for It enough recent believe big to these growth investing themselves. look We're years are global is rates. We've spine enough great and We're leadership. And where in and manage we the that in write can markets to period a what stick organic that got deliver be business. exceptional us. Just diverse just through

how change that pivot based results. really really like the doesn't we just we can't it quarter-to-quarter on think So about business and

Kaila P. Krum

And Mako on know moving higher. Mako, are I utilization mentioned just Okay. then That's you helpful. rates

just So, of metric forward? out it what across is then growth? first, also your systems gives terms us clinical of can in that you're variance in us And see work to And the you the help of patient-driven? then through that? you there improvements help much can it if utilization parse can understand you confidence we sequential doing? more just that that drivers continue going specific Is Is a

Katherine A. Owen

surgeon practice. greatest early in the and typically take Encourage data. the the launch sponsorship, March launch. at to it you physicians investing full we're going in see journal. is into It's of We rates. of get have a I out Mako stick there. we we've to in the publication where We're the into in expand what that's are surgeons, new stages investing you is sales a clinical more can the train and with to plan; areas champion, surgery But think continue just where tell who in we the our at So same we about there we're to drive in broader will those the a going interested where got to believe in that to knee Academy. studies, all team. We're then in will pre-mature force the invest technology, direct-to-consumer and given robots early need recent utilization went just because clinical focus look

Kevin A. Lobo

across academic hospitals, teaching even of it's to occurring see encouraging that like just community to types the really so centers. adoption rural different hospitals, the Yeah. I'd add hospitals, surgery

the see to really spectrum take where there good we're adoption. So, that little that was belief And appearing really seeing especially exciting. centers is might Mako some initially a the longer, across academic

it's really So across board. the

Operator

next & Our with question Josh Company. from the comes Jennings line Cowen of

You may proceed.

Joshua Jennings

just (XX:XX). deeper USA are to horizon? XD-printed Mako other the potential just you thoughts catalysts into next but Hi. And on Knee think future on acetabular wanted and Difficulty] Total get to the follow-up off first Thanks, any I benefit effect any year, as wanted the for [Technical launch. hip franchise on start and the is for I just Mako franchise updated good evening. the cup a with launch halo the the there question

Katherine A. Owen

Yeah...

Kevin A. Lobo

Sorry.

You but Go go end, broke at ahead. a ahead. the little up

Katherine A. Owen

utilization we're terms the So, on to Mako, to I I think asking that uptake, going real anticipate in and don't we continue a continue were – ramp here. you of change. to to expect

XD-printed We cup. a are new launching acetabular

Kevin A. Lobo

launch Yeah. won't surgeon We're the in on cup. the limited very The part. right The full be launch middle strong probably is now. until early feedback

this we strong year, it. about the is know, you We're had started It's also bit of far that, positive. yet had And very very, just product very a cup. launch. or And excited growth the a feedback very new should hips be we'll next stems year when as is in hips a two. not market-leading the to that we very full we've in growth It move quarter we third launched, so or is within very But Accolade XXXX. the hasn't XD-printed to had Second But into cycle last dry to a including II. knees. halo modern in contribute but powerful. effect catalyst Prior

rep think it as places look now, into knee. obviously you've It a all future. But extend the inside has other that kinds offerings, of to will start opens show to measuring I breadth getting an extend. in parts. Stryker never I to been they Once that where to a sales our wildly going the Right have it's something license to we to you relates account exciting. that's and start you it hunt to is think we're other forward (XX:XX) of And doors.

Joshua Jennings

terms more product Sage Great. in helpful. that on Thanks. where terms still any mean, not remediation the efforts. work on costs market. getting be of process incremental you be needed a Is in any that's of But follow-up impacted And back just in you done? there and remediation major would color are the the are I guys to

Katherine A. Owen

Yeah.

is at with So the which in end we what August of full portfolio stated we've fourth availability our when product the by consistent expect to be we it. quarter, of announced first

to do We have a on. of with our as lot we touched work customers

as So, we made products inconvenienced that them day. for and it use disrupted and mentioned, every them we they really challenging

to So win we them back. have work to

Kevin A. Lobo

have production. And facilities expand ramp to test significantly. massive had We been to And a our it's we undertaking. lab pretty

filling and the to I'm just SKUs just than that we have But shipping, So product other we the family all all takes other we of are of sort across restock every that families make time. more supply have the the pipeline manufacturing scaling and gating chain. factors, and product excited the no very up

Operator

the Our next of question Denhoy Raj comes with from line Jefferies.

may procced. You

Raj Denhoy

what one terms seeing I'm the the a starting down still curious, seen be longer robot or Have time-neutral ask starting robot? coming treatment in get as I'll it where take Mako Good times? treatment as they're you're broader utilization Hi. you to you're afternoon. to times does of now, well. just on on of to

Kevin A. Lobo

of on surgeon. But barrier. the say average slightly are depends really surgeons It surgeons a not time I the on are faster of slower. is the are that robot. a number There would

to different the making and time motion bit the So, I feedback even extra have that get we decisions before. is make could I decisions from on liked want a feedback, through that I slower surgeons robot, little can range to are never could for to little before the to I having because who the a them of never dynamic prior feedback that full be make I make able inter-operative cuts make

very able I enough barrier. some are So to to is launch make the in sure surgeons for launch, barrier. enough a faster we took And of doing year, to full have the recall, as at procedures careful. We the be going were this the to cases, if wasn't actually surgeons some we be And surgeons whole that trained, say, the us prior robot. you not look, time stage time mentioned, to with

you as change ramping train change as surgeon-dependent. it that more that spent and sure service a feel surgical of is training staff. surgeon it to behalf surgical requires lot well lot There doing the as overnight of really this the management our that's why has management And doesn't time occurs that's on have technology make to the the So happen a I And in their of course, of it's staff. in is up what a successful. team staff,

Raj Denhoy

the thoughts business do alternative seeing your you broad settings surgery question that just really it's setting knees could And around mentioned have great. kind procedures about in moving you? the ambulatory you're it's do on outpatient any to And a And what done. adoption of centers. that for you also No, for thoughts and getting broader in to

Kevin A. Lobo

Yeah.

will lot a the very noise well-positioned small It's I in hospitals. surgery do in the we centers centers. still it. compete a done going And as I of it's So, look, the are that there's we'll that surgery part overall are about continue trend forward. be of procedures in think to a think

Operator

back are remarks. now There would closing Mr. at any turn for to Lobo the this further I time. call questions Kevin no

Kevin A. Lobo

all you for So, thank joining our call.

the you. call conference for be XX, Our will January XXXX. fourth quarter held XXXX Thank results on

Operator

you. and conference. today's this Thank concludes gentlemen, Ladies for you participating. Thank

now may disconnect. You

Stryker (SYK) 26 Oct 172017 Q3 Earnings call transcript