SYK - Earnings call 3 2023 | Stryker Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Third Quarter 2023 Stryker Earnings Call. My name is Krista, and I'll be your operator for today's call. [Operator Instructions]. This conference call is being recorded for replay purposes.

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

proceed, may sir. You

Kevin Lobo

Welcome to Stryker's call. third quarter earnings

are Glenn President Boehnlein, Stryker's Jason and Vice Relations. today CFO; of Beach, Investor me Joining

provide comments product results quarter additional followed will will with I Q&A. trends we the our Jason before provide call, during the call to and today's For quarterly opening the details regarding then updates. by opening saw other some Glenn

around what GLP-X misunderstood. Before being and like discuss I quarter, concerns I is the would the to address

business This for relationship important to the relates There not a as taking replacements. knee the aspects oversimplification activity is and risk knee slowdown. ignores place and at genetics. an is level it of more between weight Our

surgery more are significant fact, short both the of the barriers for levels. And and people persistence long large as We there are, and people term, in these these help make In a unknown likely lead of term medicines term. said, to the it ineligible in will taking to increase optimistic activity of adoption that their as impacts in sooner. to long With eligible the it short rate is drugs will term, surgery positive the the place. about still this

our a sales. representing a with XX% we of knees have as business, diversified reminder, Lastly, very about

growth X.X% day nearly comparable Orthopedics robust delivered This and and reflecting in sustained demand Now included versus results. double-digit and environment high despite strong one Spine, moving against to commercial growth We quarter execution. single-digit selling and of XX% Neurotechnology third team's XXXX. MedSurg growth in our performance a less strong organic year's last our sales

the both growth markets. globe U.S. strong with across in results high the were and Our single-digit international

quarterly of pricing positive remain reflecting of margin EPS from the demonstrates XX% sales adjusted result driven also a once addition, we was primarily quarter We again our to focused continued realizing strength on our $X.XX, but recovery. of third In This XXXX. compared initiatives, delivered overall price. the growth

and narrowing are XX% to of growth previously organic will earnings now in provided of XX%, step we and our [ to now improvement in nearly supervocycle our sales growth by sales encouraged strength ] of turn year. this expectations Finally, over performance, high margin to our the sales XXXX we expect share. end XX.X% of sustained year of XXXX $XX.XX XX-plus ranges percent Jason. high the important a year for reflects an call organic and Coming XXXX guidance organic growth per innovation, full our off $XX.XX full our are per to share and of the I team's

Jason Beach

organic the pressures patient XXXX. comments My in Procedural capital challenges and be and expect our these backlog double-digit on on the elevated the hospital Kevin. demand providing Endoscopy globe, and gradually will pockets will today capital environment our including will XXXX. and continue end resolving for tailwind in continue update divisions. around staffing demand, growth products Demand constraints quarter supply an And and volumes Thanks, Mako are a Instruments an healthy product focus we with in to continue well year procedural through as the the update launches. into strong, while of orthopedic and as remained remain support current through to on

Also, and demand knees hips robust drive for which Our above business. our with capital and and order well backlog U.S. remains strong to will remains consistent elevated QX installations, levels. international with continue Mako normal

moved platform drive positive to XXXX order traction camera product launch, is in continues the which our super strong and full Next, growth. market In our driving to cycle its momentum. gaining QX,

in and Extremities will plating complete received comprehensive for Pangea our a Trauma our system in approval and history is trauma's conversions. addition, division. facilitate XXX(k) very the hospital Pangea In that we system largest will launch be

up for a launch gearing quarter XXXX. second the of are We full in

We the setting. have now wireless market. added compatible newly will also stretcher Vocera be to the address will stretchers Prime safety with capabilities to extended help continue can for the and our support our These new our on platform of launches be and emergency the approved wireless room stretchers, patient existing years. Connect in This multiple to first growth feature

we've positive shoulder are have the track, who surgeons been applications from on exposed received to Our and feedback Mako and spine technology.

November As Day webcast Leading are stryker.com. our Relations be Investor Growth, a live the on which the we X, Delivering will at hosting with Investor on page reminder, theme:

We numerous will product leaders across followed guided a attending have Stryker, live. prepared by from those for tour remarks

expectations leadership. and product We're our We over coming and provide members excited now in with to interact call exciting the Stryker will showcase priorities to that, launches investors our several many with Glenn. of for the to years. analysts With opportunity the our I'll of turn having

Glenn Boehnlein

I my on related our quarter comments third Today, financial will Jason. drivers. Thanks, the focus results and

been detailed today's press release. Our have provided in results financial

XXXX. sales organic growth in the favorable one The was by impact selling had the Our third less X.X% of day was quarter quarter, quarter from the in XXXX X.X%. than pricing

our the of see trend all to almost particularly initiatives, from positive Neurotech contributed pricing quarter. in which and businesses, pricing positive a MedSurg We our continue for

markets, was emerging was the currency Foreign International sales. Europe organic In most sales a by growth across U.S. on growth Australia, X.X% positive X.X%. organic our sales sales momentum and markets. had impacted quarter, and impact X.X% favorable international particularly of

higher quarter which offset adjusted currency lower driven tax income $X.XX XXXX operating adjusted XX% from up sales, by margin rate, expansion the of by of impact $X.XX. partially in a was foreign and was unfavorable Our the EPS exchange,

XX.X% strong In included Power of provide which Tools, growth with X.X%, of XX.X% both SteriShield Medical around led momentum Surgical evacuation growth currency sales will U.S. Neurotechnology and and strong XX.X% continued XXXX growth MedSurg was its had growth highlights and U.S. From organic stage and growth comparable launch across its of growth Waste the X.X% quarter, at by Now quarter. full international the led sales account. quarterly our a Management constant performance. some -- performances the XX%. by camera double-digit comparable and a sales sales its and had organic growth U.S. double-digit by instruments and perspective, emergency I in growth. U.S. growth organic strong segment smoke Endoscopy in Technologies the XX.X% of surg product provided sales was of XXXX Orthopedic organic end growth businesses. businesses. Instruments of of XX.X%, of businesses care of had impacted almost which and its business growth and with September, in sales Endoscopy had sales sustainability communications strong organic In the of system, organic

Neurovascular most growth a our this had Medical we a reflecting hemorrhagic of X%, of the comparable. markets. continues which of large had to our organic ENT. QX huge X.X% included sales organic orders, capital internationally. instruments, XX.X% and organic have in had business and constant in QX expect solid emerging X Spine U.S. MedSurg and which currency U.S. growth sales included a CMF XX.X% and Geographically, despite performance growth X.X%, U.S. growth units, and and Orthopedics backlog included neurosurgical, Australia, business. of organic Neurocranial growth had of in growth double-digit Europe Neurotechnology all businesses. neurocranial strong X.X% a strong endoscopy and of and organic reflecting performances sales in both in growth sales Internationally, double-digit and

in market-leading X.X% knee which business grew position our Our organically, robotic-assisted reflects U.S. procedures. knee

insignia hip Our in U.S. and day strong hip of both primary grew business and fueled comparable our The by Sam. for one growth per for organically, XXXX hips knee XX.X% hip reflecting reflects and less solid selling a XX% X% knees. HIF businesses the quarter very our in growth

upper across business Our led organically U.S. extremities with businesses, performances strong ankle. Trauma and and and XX.X% Extremities all foot by grew

U.S. X.X%, of and by Q recently navigation led system. businesses Interventional our Spine Our business guidance the grew enabling launched technology the including Spine performance

the strong X.X% Australia, XX.X% most performances placements to Internationally, other Orthopedics markets. and Our in higher organically and Canada due increased ortho by grew Mako including U.S. organically, Spine in emerging quarter.

will highlights I Now quarter. third on operating in focus the

of This cost quarter that by ramping XX.X% XXXX, R&D third certain mix. of adjusted quarter of pressures decreases was spending was approximately the favorable, the basis represents sales, of basis XXXX. for point XXXX of to to launches. from margin in was cost X.X% of easing in in the experienced product driven points comparable Adjusted the XX Our we and primarily the of improvement from and price gross which a due spot XXX purchases higher a XXXX, benefit related third decrease by primarily

incentives growth quarter travel was of sales, and than due cadence SG&A was normalized continued to higher more XX.X% third including points adjusted and XXX investments, sales Our basis of XXXX a meetings. of the which

a to invest with percent in full continue of as to for XXXX our expect We growth. be sales year we levels SG&A as line

summary, higher adjusted the of In certain income driven expense margin. the XXXX. the offset of by cost aforementioned XXX pressures, increased than interest which favorable operating quarter primarily for quarter, and margin quarter million the for interest performance of expense was by to by easing our was other third This approximately is higher points was gross basis on partially sales, of driven Adjusted XXXX, $XX income. XX.X% slightly

and tax impact of of items. reflecting an discrete XXXX had the adjusted effective rate third quarter tax The of mix XX.X%, geographic certain

rate tax be we For XX%. to expect year approximately effective full now XXXX, the

on $XX.X third Focusing and billion. the total sheet. securities ended debt the cash marketable and quarter with of of billion We balance $X.X

down During million the quarter, we paid of debt. $XXX

cash flow. to Turning

performance Our billion, higher year-to-date receivable collections. earnings cash $X.X this is and the of operations from results reflects accounts net

to range Considering XXXX in growth procedure equipment continued our now trends, year organic year-to-date XX% XX.X%. the for expect and robust be we of to backlog sales results, our positive capital full

in we range Based And strong share the impacted X.X% the be I adjusted from If of levels, to included exchange pricing will which together sales $X.XX with per foreign now per the share. open for $X.XX be will unfavorably year, $XX.XX approximately per to on to $XX.XX impacted now adjusted momentum, are expect for expect our near currency EPS months Q&A. in performance for full our year. guidance. hold in earnings X We the be the year, full to of by rates the of we unfavorably first call share current slightly be both our up anticipate sales positive will and

Operator

Instructions]. [Operator

may from comes you Larry with Wells Sir, question Fargo. Biegelsen first begin. The

Larry Biegelsen

Congrats on higher aware be should tax of of companies quick rate beyond one And we've time. I guide tax this or Stryker. on are Anything rate with currency year. 'XX follow-up. top you're a Any had in here. to takes some puts Glenn, the growth organic good year next the color for guiding and another line. consider of or XX% to the quarter over on bottom this we What Kevin their 'XX. increase at line seen to lot beyond And

Glenn Boehnlein

start Larry, on. Kevin I'll pile out and can here then

First guide for super XX.X% about excited year stay tuned to of on we're XXXX. and all, to XXXX. XX% And growth the we'll January, full

probably of include point, have that think currency, cycle in some headwind it worse, taxable of innovation. get guidance It's ahead, also of bit this favorability about necessarily that swing. as going headwind about we're it's our is. it overall you up, and has And January on a but to Thinking mix early think of projecting full about global of keep stay of a year. we anything right get relates really where course, was And items in just we'll it's sort and I that when As little tax rolling to a then negative in talking position. for is -- that on XXXX that in us some little guidance. tax it's QX. not to it discrete don't the assess X, We to if But the bit tax, to we of Pillar next helped next a going way our year, it for our QX. We'll think our really at super is continue I income

You've seen that with launch. the camera

And momentum. performance a Neptune early on and launch, You year. which defibrillator S we've power really very backs of in QX the the starting launch with the launch saw instruments the then is that professional got exciting next-generation next amazing gaining tool

we very driven really about So and feel strong behind innovation commercial good execution. momentum our

Larry Biegelsen

you're the week to know meeting. sprinting That's about helpful. the long I at operating to pre-COVID term, to And margins. margins talk just one on analyst next the back going

what's driving front So my I visibility you is, back to question to how not run going -- you're do that. And getting don't margins? know much But have? I that pre-COVID

Glenn Boehnlein

not visibility is good now, Yes. Larry. pretty our to though, that, material next outlook on What to They question, the That's more the you that To of for we fixed supply which impacts week will chain more for say QX. basically our we And related a the away at any I purchases. contracts XXXX. sort can pricing analyst raw have We're gone have extent it possible, give good we meeting. certainly the for buys. our enter spot seeing color of

And about things as or so also feeling less that. and we're we more a products. normalized, raw get We're do little materials better pretty our positive freight feel of about expediting seeing even

good this as we tell we to has that So offset I a that XXXX. of would we move in there. position of to we know And we're forward. a you back sprint have backdrop all as inflation

next on a we've enter has pricing So that. around seen we strategy on positive pricing, will to as working we work really strategies of that been in Part year. we and are the that momentum of our lot the continue

Operator

Marcus question comes JPMorgan. the next from Robbie of The line from

Robert Marcus

to this a trends fourth could we've speak you return knees, this with quarter. quarter? in on expect if And do Great. the gaining in seasonality. I hips and seen quarter you're you Wondering wanted normal and still share? to to Ortho seasonality Do lot increased start and you the think

Kevin Lobo

take see I'll turbulence, would sure. few last more normal after seasonality this call what the say I'll pandemic. the we of the Yes, question. years did with starting I

strong think strong, that what is back to of seasonally with was so 'XX, October. is of the We're that as kind month 'XX, QX already be And 'XX. seeing we means it going to going

fine. So I think we're doing

And results obviously, giant had surprise is business from terms had. we that the us Our we not year. did comps last in of --

last fourth in look you good our at in feel position growth very knees year, good quarter. the and we of If and expect QX hips about have had both a to

Robert Marcus

environment Mako same Great. speak And the of just maybe ortho and to thought. just and capital Other and in a robotics trends line placements you up, overall? equipment had Maybe could nice following quarter.

Kevin Lobo

and Look, full is equipment And numbers, growth. is Instruments capital medical. consecutive be the to overall Endoscopy Yes. even our be environment you will The see medical double-digit healthy. going It that in medical. little environment the was will year quarter-to-quarter. capital is growth overall, huge. double-digit QX, large vary was a in which does bit of Obviously, healthy. softer from -- year QX But than little And a fourth

You other are saw for big. numbers the OUS ortho very

tremendous are capital side. is really Mako what Asia well our so overall, picking momentum on Pacific in across So up But -- both business we as as the just EMEA.

Operator

[ with The next question Deutsche Bill Bank. Chickering comes from the line ] of

Pito Chickering

It's Pito.

realized you're sort that giving not margins the I for of On margins. us XXXX yet.

us the on last to of there focus year-over-year. how there? points basis third already in XXX timers you Are Because you're improvement. gross sort quarter that of quarter where compares guidance one how So about 'XX. points third margin margins. Can you were in the And bridge any XXX gradual on you basis within grew quarter

Glenn Boehnlein

buys. where that spot where a we any looked lot from are Obviously, not buys. spot as one statement a There's now, severely we of forward Fast already. pieces we were the you feeling Yes. we're A through couple flushed and year income seeing the ago pieces here. of is at is the impacts of QX pretty were to

more So of improvement seeing some supply that's management. of right also given sort normalization We're there. chain a

inefficient. people of means So back don't cycling have time. we to air have like which ocean out, means that the a really and lot and scheduling get that manufacturing freight freighting is things cadence regular all we and which We can can not in

gross what seasonally, think mind quarter. improvement. the to And mean MS&T we you'll we it's I margin. think quarter within that Keep still in a see. lift helped with really expect so sort give big I gradual a bit just for And that's QX, of us I the little that saw mix combined a the

we'll mix feel impact QX gross in the margin. so in that And

Pito Chickering

you medical. of additional in grow near to Okay. physician pressure the term? in the talked to impact seeing Are the follow-up And you hospitals? hospital a question, hospitals on seeing from improve are Or changing environment CapEx and/or like margins rate about big in you continue compensation backlog any rising as CapEx

Jason Beach

one. I'll Jason. this it's Peter, take

strong I And about standpoint, percentage replaced with us. think be is revenue-generating the remind large to capital to you to environment right, said you, that capital has for as be capital just this our it just I from on of continues capital, procedures. Kevin think build think what our a to

so And you be as the And Medical, to again, on that point be think Kevin's strong. a to then, continues strong. double-digit year, capital continues to about large

So really it environment. capital change as to the of no tone for us relates

Operator

line from comes the Citibank. next Wuensch from The question Joanne of

Joanne Wuensch

on remind how impact you may or products ramping those track. the you fewer the days. time? And adopting and the you selling applications and on spine over can And you one, that what us Could quantify go Number track see number of shoulder two, do said means?

Kevin Lobo

to a And spine as will that our surgeons well. good surgeons That's of will additional Mako to around and see, at But by I've product is were kind application, Okay. got earlier the that said be approximately this obviously company spine lost next division higher impact it number impact, we on NASS be a impact. full about coming to -- will capital middle that's we show Great. benefited from total insurance some does an Thanks, company. has year. What expect out it's And a on think Joanne. a What implants track. year, that which timing include the year obviously roughly it we've around Mako than the same of X% was it there gotten And QX. year terrific. X-day able It product be we the will a always which used on feedback But we The of We on will also total that. the day be very quarter, X% I today. is said of days. in then equipment.

And end shoulder be a ecosystem. then year. shoulder. of have We'll So pretty tremendous towards will of we'll have initial the an the launch

are the products. So both on of we those time those lines on are previously, and we track communicated pacing

Operator

next question from Evercore Kumar ISI. comes with The the of line Vijay

Vijay Kumar

maybe spine like compare there market and a versus shoulder, hip and knee shorter Kevin, you that on what what Are the and launch spine and Mako question hip differences contrast and between any knees. curve shoulder, can for last the surgeons versus and spine Mako application look market? the on should

Kevin Lobo

first, to Well, tends of to objections, uptake be the case first. a you difference, honest. have I the management. you. first, of when be to were change to much And wouldn't there's little to people's honest have So Spine, with you're we a Mako say remember, In was Overcoming be right? having to slower,

think we if and I couple of we robots large in about players there think already are very of the spine, a have market. a market, the already footprint in

So faster be Shoulder a different. with bone knees. should including what hips be and with saw It we preparation. to be will first-time me, that will application a than ramp

be probably think pyrocarbon in amazing to I but time strong one business and a will product. will have double growing. So They slower for really it. pipeline. continue need of digits long doesn't a terms uptake, that an launched our It's its been shoulder It's

And is way anode be, involves it impactful. seamless. probably have to we exactly It's mixed first slower, magical needed workflow again, not will It's like so growth, management, The not -- one. We have I the shoulder. we've products little think, it. will and very but patient smooth. because it one but efficient. it very there's many especially drive very, the very reality. high in It's go the it's new Spine, But I that mean just very, a change we will designed bit

probably will Spine a faster think uptick. be I So

Vijay Kumar

margin quarter. elements The the some to Glenn, was the jump-off right ramp And like at mentioned the you. they look here, to because of sustainable. pretty for QX QX one When Fantastic. is QX looks you you point sequential seem in maybe, be gross impressive the performance

impact, more think conversion related I see normalized next down that had to I year free cash go a conversion? some inventory that think you for and should

Glenn Boehnlein

got QX lot our all, to that look a will I margin think that said, right, gross at I of that talked seasonality we relative you for about a in through. margin, talked those No, performance amount the do I was flow Yes. reasons to very of you're sort as for first of strong of gross and about. MS&T

will little analyst talk get I of more a expect issue. just just meeting. mix moderate QX into then about that So we we'll And next the do as that year, because at

Vijay Kumar

Great.

On free for that cash, year? would next Sorry. normalize

Andrew Ranieri

mean and flow. we've between cash XX% for we Yes. targeted XX% I target. expect And that free away move I would that always don't from

Operator

comes RBC. question of from next Shagun Singh The line the with

Shagun Singh Chadha

in a are lot us excitement contribution your Kevin, the XXX I or by low you've for Is ramp. launched that hundreds better XXX basis points quarter Could the this you alone, and super points help our yet it of 'XX 'XX? to I products of already you 'XX? think there's cycle about innovation numbers you beat of those basis segments. and and quantify think between in

basis color points that apply it So Any some XXX if to translates do to But just math you there. about 'XX. for to would trying be a number helpful.

Kevin Lobo

system, organic bit really a which was the incredibly pretty in impressive. greater OTA And talk innovation and this just we are from around it's because business, XXX showed growth of thanks conference it Shagun, Stryker business products all model. time. we about so is, units. the in nearly extremities What's at force mean consistently habit you positive. probably breakouts is really high that the med we with And feedback recently, of through performance of little at decentralized you why we roughly impacts out, as haven't a providing question. X our by this products. That's electronic look last the same we point enough. double-digit been new formula. why new the the the impact cycle really if Consistent tech, products the That's extremities We the for weeks, outperform is don't coming at really really end Pangea have execution launching of trauma the drive interesting great basis of market sales impactful cadence I of points. about combined then many Yes. the

year, we that the impact next quarter second up for business the our won't Now ramping of are launch. until but

biggest was had, ever fuel amazing. even growth from already the top an launch more going of on Feedback they've to high-performing surgeons business. It's which is

I very the versus on how that engine to breaking those and on is of consistently Stryker And company. and count the into price it that is because just how to out think way these of outperforming we much products think So about can market new the parsing to our that, products But not new much mix. going growth we're rest of for assured elements. get is

Shagun Singh Chadha

Got Can it. med as quick you That's remind just at performance us end helpful. And high a Stryker's follow-up. define how you tech. just the of

that you do how So define growth range?

Kevin Lobo

Yes. said we more market, tracking of XXX I now, continue XXX outperform faster. was it market years a points Historically, say, Shagun. but that level. than would XXX we've it where to it's at improved basis right to points versus has higher few The clearly basis towards ago. the kind

Operator

BTIG. The of Ryan comes with next the from Zimmerman question line

Ryan Zimmerman

think of orthopedic in seeing hospitals. of in issues rates net staffing the anticipate range. be 'XX that a as debt guys be always takes to and Shagun's also to at and earlier I of offset question you've some by of at outlined, the want you kind rate way, historical have But what some that we growth appreciate X% on 'XX and to puts think growth you on it similar asking question tech. we're the robust med of Kevin, end Cajuns X% been Larry's you when that I dovetail about to higher the Do demand,

Jason Beach

that this follow-up. here obviously, comment jump top further Jason. But and about I'll detail. open bit then about Ryan, in how think of the I into for at XXXX, we'll you as terms a point, little we won't it more But get thinking just in in we will it's January. any your can we we're more line. give up

Ryan Zimmerman

Okay. I to different try a had it way. in

there's socket appreciate just just I I I'm today, mean I'll interview today. the there's actually that where that disclosed in that Mako from And out from there's where see then. was directions XX,XXX head robots wondering an if right. yesterday you that XXX All ASCs -- gave your your in topping knee thought you it would it. Mako, nice all the -- maybe it's I it you I'll today? And interesting. I as U.S. ASCs can a mean at we about see and time all ask, think as turn you And I really early think mean, although then of of own guess go to but as them U.S. hospitals robot, here of can in curious initially, be we've the potentially kind seen in a sit X,XXX was way hospitals I'm over of market no that was ramp that days that or shift do So I X,XXX thought you ASC, where is business perspective?

Kevin Lobo

to continue best their want of a the well ASC, is right Mako And will move as the suffer. They to grow ASCs. and as being ASC. Listen, XX% in those Mako. they it, they do dramatically growing surgeons technology, is Yes. want just our knees done business now, number in And performing extremely reminder, dramatically. are not the at hip That and procedures to call roughly, want

be So because want within able which sterilization, well. sterilization same ASCs. very to in lends to instruments, pressure tremendous in room less have I itself There's Makos upside that it do. a which it, they They the less ASC is for on do major hospitals see don't bottleneck means the

the have effective in very, So ASC. it's to actually product a very

in and so of that ASCs. higher, installed more see going being based robots it's goes XX% somewhere as you're as and pundits, percentage different And to that between XX%, XX%, these more on moves

in multiple in States. in figure there staff. health parking it about They're talking to about a hospitals model there same surgeons, the in frankly, care. countries U.K. talk can are Europe. sick aren't on that front So than the delivery out and and United Germany, to for of having this actually Staff, good easy for centers significant where you here starting where actually going is day. good good Good about to it model In in patients. they're nurses ASCs. the like of is And in a us upside the to Switzerland, they're starting talking for We're they're now in and frankly, go a love Patients home there's we issues and where going surgery for place the and people less ASCs, staffing

Operator

The Sandler. next with O'Brien Matthew question of the from comes line Piper

Matthew O'Brien

was Mako line eye-popping. pretty quarter that Kevin, this

I'm Mako historically? WS within placements? the a was competitive. that's of a competitive the great. accounts kind all I'm you mix those then accounts disproportionate this launched into there, see of -- of system reasonable it of that you well. So Or is J&J existing not it's And of you getting Did and But kind share market Zimmer that dynamics? then as at are between with sure you wondering, pause And pushing winning shrinker but more still placements then behind in some a and have kind year. now sales you're those specifically of

Kevin Lobo

have they slowdown Yes. a We're as competitive not solution in applications, robot for it's the hip modest. concerned then, believe we really we throughout they course, what side-by-side replacement We with at really call side. again, pretty bit are the not similar was knee of people We product by the other we a and, on to adding would encourage frankly it saw came it's periods. products competitive they in same really the the little been, And to comparison a of looking forward look -- It's is accounts. we're between side the hasn't and now, who the the change really shoulder But companies. side. let's look I as it, that, seeing pretty for the really the best and say spine can best And coming mix robot. same that get. technology, in different And Stryker-friendly by much of side launch. frankly, There the saw that really, evaluated about and want with market

Matthew O'Brien

you curious a data makes just replacements Shanghai a we're It that robust. know looked you the now, in coming if benefits little not and in talk Kevin, you're of us then on going that necessarily patients confidently some not a is that years that And about X, all I you at. sure looking GLP now another or near-term can lost but knee Stryker to there issue, internally I'm have some an that eligible touched some a get a bit at beginning, investors fairly you now, sense. seeing that that in soon be There's then in out conversation that X call. on what weight these study of is all not this about again, reduction knee I'm is that although but can big replacement. all There's are tell hip don't study, study for this of gives comfort at dominated terms from this X, out OA that that

Kevin Lobo

right whatsoever be to renowned have the that us spent this reduction, here worry we surgeons no Look, Dallas teaching morning to that Thanks. today's have an in massively world and for have at slowdown at there, the GLP I would Day week our I'm Analyst going for use August I Yes. Investor feel who saying Day, discussion. think, poured call credible there's meeting we'll some to a we're talking devote nonsense. the surgeon to tell going because study in the teaching need our procedures. going hospitals, What actually And you knee hospitals about is a in next research and through any time not and to multiple is the is there now, to

Operator

question Jennings The next from with Cowen. comes TD Josh line the of

Eric Anderson

Josh. Eric This for is on

I quarters. competitive any last would few Any there's great. think more market. from Looking Are wondering there benefiting rev making Do you hires? the shifts? if share your detail at in that just you observations spine, be on a little any share you're in could been consolidation was detail you some And

Kevin Lobo

Yes. about of of it's more years, early X days, still thinking if big only we've that right, see There's long still or one, and is of I the quite last really really X occurring, a consolidation. you're having not It the good we in Look, than consolidation enabling seen the technologies. that's term specialties. in the operators consolidation spine the ticket bit other be it's to drivers technologies. dense But of of the successful is think to is enabling sort some our one

will the will QCard exciting which other in you market, the delighted that which technology performance spine fastest Stryker. enabling of and then camera really guidance Q the Our with see smaller And paired the internally we're with that what provide system, developed an at the footprint we is in with future, with even than be Mako ecosystem.

So now, force I probably early sales catalyst a little a the think days forward. of to really for that's provide even relates consolidation going as But not the and right lot future is -- will more change. it that

of will in decide advantage we as you're into more for to disruption year roll when to forward they change next we however who's that holding look in of which taking of things They're and come, have think to can. now. going territory, that that sort which I see person. constant but we

Eric Anderson

then there given environment. And was any organic latest I portfolio secondly, the of M&A, the to current your hear market on areas maybe growth? on deals curious Understood. And are just thoughts

Kevin Lobo

Yes.

division would First has say today, of targets every I growth. all, for inorganic

Stryker. Instruments lining the opportunities. our we -- within at a deal the on division rich for this a to development some bad other There Cerus division. gone a landscape are down, that interest can targets. waiting But such up. Palm hand, done the Obviously, position business just not up deals improve pretty we list every and couple But has and our start of the Valuations, numerous more year which a have have is targets. they're And between thing. So The deal come are have we've is in rates cash decentralized with cases, companies, deals. we of doing model

little committed what the But financials good. paying right with line about achieve our rating to raised of had feel Glenn, doing is start in a do agencies. down how we rate you we're We're level the to deals? bit. And hurdle debt the So to feeling willingness

Glenn Boehnlein

live the this think commitments we assertions our relative to get position I and at we Yes, to the up our of end year. we to debt -- point will

to of terms divisions so hands we of in our sort that all of our list from Kevin's there's this long of sat on a And really period point, time. say potential acquisitions. during wouldn't I

We with at to look the companies have engaged several possibilities.

of the pace do growth XXXX. we'll our think in part I'm up a that certain forward, pick is moving So that I and strategy big M&A

Operator

The Bank with next Travis of America. Steed from question comes the line of

Travis Steed

M&A question. Just a quick the follow-up on

if curious of willing expect when some you into framework of of you'd to in kind 'XX. larger on you're of deals little do you've around some the put or Just deals commented bit the a size what should of move we

Kevin Lobo

And obviously, volume comment of size our is We're Over going Look, really larger of our fluid. what able going not the smaller close to around do -- deals to to that are be deals. freedom Yes. deals. getting we time, on hit very right a be be level is but hit. call M&A that ratio the to tuck-ins, size once have level, course main to then X.X to That's we debt-to-equity level. nice I to

we've if diet returns been end I and have into think we And $X an they this capacity to of are able towards if the last billion on do year. strong. appetizer to and deals year themselves the the present be

the to last exactly in Vocera. M&A years normal get prior predict the what to on spending we're Medical going will offense right back for not but So XX in kind you happen, that saw to big our to of going

Travis Steed

know some Great. revenue going It to of give not going sort Are like expect sounds the if guidance curious That's we until give plan? just And you're be January. I kind set 'XX and at of then to should answer, what long-range Day. won't you you margin helpful. level the but Analyst

we if level we what curious expect there. kind of should Just set

Jason Beach

Yes, of Trav, A I couple Jason. would comments is say. this

that First January. it relates off, as in XXXX, specifically to your to we'll into get more point,

certainly to Day think next margins. plan. will It week. of long-range of you We've back talked more Investor XXXX kind As the be about the about sprinting

about get growth over we how there. just years think also then as And we'll that more and about X hear when back well. next the You'll

again, narrow in in but XXXX we'll -- on January. So

Operator

next comes Newitter of The Truth Richard from from question the line Bank.

Richard Newitter

at Just are timing of on for think in ago, It still half a I the I of coming launch, guess, next robot. I you like couple Spine year. a figured a weeks question off it's on sounds very optimistic the ask guys that

adapted and they've generations to tuned. be the me wrong starting run launch third, Medtronic, on of and stay from you just system with correct Just where capability should off bone-cutting expect a -- indication are fourth screws love be standpoint, you going to to at are a already we or others an got walk what if expect we second, point I'd to before we your initial can you hear get pedicle Mazor I'm heard kind should to that. from capability.

Kevin Lobo

QX market for kind -- a spine say on we Yes. is spine the placement, and What Listen, let's yes, is it Pedicle what's than it, workflow I'd call be faster but we're group smoother. for the that targeting robot on Mako. fabulous launch of, today. will for the Mako

our really I'm So with pleased with Spine what seen I've robot. Mako

this it launched mentioning product, In specifically bone we does operates have ecosystem is be It's within a same cutting. additional navigation the It the addition, I using keep that product. within the but product same different not card Mako same will ecosystem. that the

those being are coming launch go And of the two same the today products ahead at of So the that believe with from behind being market two. we'll I those time.

as provide ecosystem. same bone and product arrive will So fabulous a the cutting the really at other Mako product, time the

Richard Newitter

reality, orthopedic you is augmented we'll to on can lines other that? assume shoulder, think, something in just areas. you about right that's more that next application have that for Do Or then any go week. going now, have And Okay. for the hear I we to time

Kevin Lobo

the Look, we and going that the mixed rest of room the actually in so term future. believers. It's we believers the part tell lot the of sort we're can big sure of we're through next not well, but is use mistreality you big going to We're I'm also to big more reality. week, screens. see it be see a about a And

years seeing that's be something the in that powerful. to believe expanding intention we with other every already look on have into the we into look don't give to So ready not some sure going procedures, to and shoulder, But right you is field. we're applications you But when you're of that. the sideways lines the of time surgical you doing have ahead. We're I'm value to

Operator

line the Drew Ranieri from Morgan of comes question next Stanley. with The

Andrew Ranieri

management the OUS a geographies bit about were it there's you, and because When you new Robotics talking But when are just the a early for OUS. and compared that of for you fairly you the utilization launch? about maybe of hips Mako, management you're for or replacement can growth. the comes to about shoulder days of spine knees any But to strong U.S. talking U.S. think your type is also saw knees acceleration what Kevin, there. change change seeing you about in do do talk you see application. you OUS

Kevin Lobo

-- Listen, of, in ago even outside were X, right of in we're kind the it We're EMEA. now and the U.K., right the now rest where say, we of call let's let's Pacific United Yes. Asia years the States. X

in think the that's that it for future really gift these that starting see some other hip-and-knee the countries the bullish this really That So about to to to terrific starting in seeing for took to keep happen And of next now on. starting here and really, on and in markets, of a giving of that that inflection you take the pop. feeling exciting. years few just with the the ago. because in was growth -- our now in some stride we're We where off other ortho saw get seeing business, European hit it's in internationally, take kind us But be honestly, is in off. seeing really of years to start fast growth things markets, it's will sure, a sort going while, that about you we're to X Australia make to an see And kind started the X, point. a point. U.S., India very going other I these We're number, in we're because of Japan, inflection the for adopter. starting sure, not in And

that spine hips to model, -- not out was about get surgeons to it through ahead. been board get just realize to steps forget the MPS with there's little I knees This to we're -- figure and sort language is really even the the just will on these growth. the shoulder, a to thinking terrific just continue go all get to of longer it starting through about we and translation, we've took training, in had years now and And think that,

Andrew Ranieri

GLP-X, Maybe actually of that just couple ourselves. on next BMI but sense I they heavier do one just I'll versus a to robotics. ortho talking the week, save this manually for patients surgeons got still

see kind a benefit If business. of benefit do on patients a all your more these lose expect near-term just as you mix actually ships knee you Mako rising do weight, or of to see tide would for a lifts

Kevin Lobo

lifts it's robotically. manure how To heavy choice. a how to Yes. with And do Mako, all it do whether a to somebody tied tide doing that's to really rising ships. not surgeon me, they manually It's really is, they or thin or whether choose

Operator

Danielle the question Antalffy next comes from of The with UBS. line

Danielle Antalffy

this And about so more international strong week, I sure question, you so had looks a will sorry next this quarter. pretty that. talk I'm guys front-running But much. you Thank I'm if actually

that. quarter on last about is what versus magnitude to sense how should the contribution has to we about prior, come going I'm down. believe of Appreciate quarter continue you to guess XXXX. into just of that trying forward, it's the get I is that? orthopedic contribute a what's think the can growth But this sustainable going whether the you and of curious then Just And magnitude question the that and driving backlog backlog second say, of and the the how part

Kevin Lobo

Yes, international. sure. super Listen, excited about I'm

earlier we've year, starting only consecutive international know, lot of in is the year. This to I we're call, just growing a really steam And faster mentioned be of years hadfive U.S. Mako than on now pace gain markets. As on international you the as to consecutive sixth

Our camera international the business is market. gaining steam in

we're to think going I poised we panel really that -- international agenda, our an we week, have of next part we're and So as hold.

available our with walk analysts. in of be to be and the number investors international We to panel the have there leaders around a even time chat able will of markets from the our all on and

has not So the international. we always bullish That feel been about case.

a was upside. remember still XX that If years spot it's you sore us. for a ago, source tremendous of

States. over sales at business, XX% If still of our in are our United the you look

a time to second still international, Jason. should And that have then we long in last for and come. So the tremendous part, potential

Jason Beach

take I'll Danielle. the second here, Yes, part

think procedural So of quantify And QX intelligence right? are similar growth as relates backlog, to prepared as to we talking into with percentages of based year. going year, well kind be terms et it we'll of moderate remain next quarter, surgeons, we into next it I'm that that. we about that said of kind to do tailwind and we a strong, I think remarks, will into in not we and And next to to to kind that procedures in my of so continue have, what year. But on do try every expect comes cetera. But elevated reassess that

Operator

the line of Taylor from with last The Jefferies. comes Matt question

Xuyang Li

Yang the I you is year. Matt. continuing just was Li I positive wondering going for quarter, start, sustainable early the forward? guess to this guess price the positive price in This was I'm trend I momentum can be from in wondering how do think

Glenn Boehnlein

Sure.

couple You're trend of pricing off And X.X% of sort coming of right. say. favorable with QX A of kind QX, continued was comments would X.X%. I our that

sure buying working that the considering of for really year, about price As incentive on customers place And have as kind at the the make the well think as in be products. our we we full to year. put as we process full contracting positive look think that also will with we we're process

said, sort So tougher. bit absolutely year-over-year, right. price. may anniversary continue of over that things little product a I you're feel We'll product going good which look that is That the on have make at mechanism we to being to

that that cycle this super product products talks would thing I coming Kevin keep of lot about next-gen though, One in out. a mind and

of they're impact get doesn't those that to because about market. bringing it pricing the products really we technologies statistic, of of that the if on calculation think price increases you So our include

So discussions us about walk something to we'll pricing. is And next to inflation to I pricing don't I an an away customers actually having as think that continue going our about as think we long that's going as of year. is with those element have it's help think impact, from

Xuyang Li

follow-up, I I how the for more more robotic shoulder bit of capital of reps launches. a entering assume try a be Is hybrid potentially little customers, focus clinical convert more the maybe long and the you would better but a hear the ahead on sense I reps? to surgeons existing in wanted guess, or before on and I going I maybe then, market. And Great. how you'd sales Mako? initially robotic with start with wanted mean it on of would right. to hiring offense get the to you All process

Kevin Lobo

Yes. very Listen, we force sales have a that run. offense dedicated we

had or specialized capital So even replacement, even before shoulder, think joint you salespeople. about we within spine

We have tools. same with the thing power

people tools. have We that sell specialized power

what model, do don't have they new dedicated going And reps, Stryker. the hybrid go to we believe That's right in what they do. gate. out we're will at the and capital sell and to we to they So surgeons and will market this of competitive that's

don't existing don't care if we also we or our go So have the if they're It's reps to to going model. go really I want wouldn't -- people friendlies. just really that just because not capital. to expect customers is that our there we would We're customers -- implant like they're technology, and to selling competitive

we and can we dedicated make. we solve we that so more we'll if approach these And have applications and think additional people, faster have as dedicated to add

Operator

Lobo I are questions in Thank Kevin remarks. you. no to now the over will for closing further the call There queue. turn

Kevin Lobo

joining Thank you. our Day results call. with to fourth full you with January November our XXXX. our and quarter We forward you you look Investor X for Thank sharing and in year on

Operator

has This call concluded.

at time. may any disconnect You

Stryker (SYK) 2 Nov 232023 Q3 Earnings call transcript