SYK - Earnings call transcript Q1 2024

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Operator

Welcome to the First Quarter 2024 Stryker Earnings Call. My name is Christine, and I'm your operator for today's call. [Operator Instructions] This conference call is being recorded for replay purposes.

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

I Kevin Chair will and Mr. Lobo, Officer. now call Executive to the turn over Chief

sir. may proceed, You

Kevin Lobo

call. Welcome earnings to Stryker's first quarter

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

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

In growth Orthopaedics selling less and Spine, organic execution. delivered in team's despite tough and with day a year comparables commercial strong MedSurg our the and high reflects quarter, double-digit in ago. XX%, Neurotechnology we continued growth This sales one growth first from and of single-digit

were Trauma of growth in comparables strong led strong double-digit the U.S. organic Our and very momentum again year. notably growth quarter first Extremities Internationally, and from performance, by continued results Endoscopy, last sales Medical, Instruments, Mako.

for this accelerate growth rate opportunity remainder the the as expect international a significant for year remains We of to us.

XX.X% adjusted sales driven growth quarterly $X.XX, of expansion. and to EPS delivered quarter of margin by the first We performance compared strong reflecting XXXX, our

enhances systems. also our of meet further MF hip acquisition the of operating design anticipated, our leading At room and on As business. This We activity. end helps turnkey communications acquisition us provider we quarter, and within steel customers' our we began portfolio to within for needs Endoscopy SERF PhD, the a of wall construction. closed modular M&A completed the business accelerate just our of unit stainless our

sales one to EPS to behind organic is pipeline we $XX.XX demonstrates XXXX. and increased and of $XX.XX is a target With share. and we in our a we course the growth deal XXX adjusted sales our high X.X% expansion by of and range company. guidance Our Coming increasing off X.X% durability of are across full XXXX. in X.X%, our and us, our now the year year. basis extensive growth an to organic of to be points active expect quarter innovation expect strength over to ability XX.X% it reinforces This meet our Also, the of of operating testament commercial to pipeline of the XXXX growth strong, margin

Next, row XXth ongoing Best recognition reflected I which want as thank talent a Work is the commitment and For. for of year their in one Fortune's in the for to Stryker our culture, to XXX teams to of Companies

Our and true operating talent us. differentiators model for are culture

annual responsibility. our corporate we addition, fourth and our commitments comprehensive recently In disclosures which captures published on report,

will now turn over to I Jason. the call

Jason Beach

current select Thanks update the Kevin. will an environment, today product on providing on capital comments demand and highlights. focus My

Procedural strong activity stable the adoption continued quarter in line patient volumes surgeons. robotic-assisted a healthy in expectations, in by quarter overall. demographics, environment remained be and remain, with first pricing while divisions. capital driven with healthy and And surgery, with Medical continued for our remained constraints of pockets the supply backlog supply products Endoscopy to in our stable our our elevated across continues Demand

hospital launch is conversions. Pangea and the quarter continue Trauma to to continues full April, performed campaign system will strong largest we our launch. division first enable in This Knees in for both Pangea our contributed growth direct-to-patient perform cases as In and are plating that internationally. well, installations and our record with which the it businesses. U.S. offers very to Mako Extremities Mako will the first drive Our Hips in history comprehensive traumas up gearing a using and system a our larger

within workflow. product a improve and acquisition a capabilities defibrillator FDA XX approval for interface one received is a the business Physio-Control. catalysts our platform of touchscreen and emergency unit for monitor. our care our connected new brings XX we LIFEPAK to advanced modern This with LIFEPAK Next, of flagship from was is the that

this it the our and will end launch multiyear QX, benefit to at a product will have of Medical We division.

and to the the followed Lastly, CoPilot launch Mako, are Spine QX, the at pacing end application in shoulder of by year.

to continue these exposed surgeons receive We feedback from been positive who technologies. to have

turn to that, With the Glenn. I now will over call

Glenn Boehnlein

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

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

growth the quarter the in quarter was XX.X% to of XX% first compared Our sales in organic XXXX.

the was quarter, impact from we quarter selling X.X%. by The This had one day than favorable pricing XXXX. less in

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

positive international on our strong Foreign U.S. and most quarter. sales markets. in currency in X.X% XX% the performance in quarter, a the unfavorable sales X.X% of Kingdom In emerging United included XXXX. impact growth over of and a very across comparable markets, International had growth was sales growth organic our XX.X%. momentum Canada This most sales against the particularly of organic was

in sales margin up expansion. $X.XX and driven XX.X% growth of the XXXX, quarter operating EPS was adjusted from Our by strong

exchange unfavorable had an translation impact currency of Foreign $X.XX.

had growth which Now I of organic XX% Surgical growth international of organic provide Technologies strong sales of included and X% Orthopaedic growth. organic double-digit Instruments with highlights U.S. Instruments XX% of segment and XX.X% some XX.X% constant of U.S. across quarterly In and currency performance. sales the organic growth the our growth quarter, and businesses. had will around Neurotechnology MedSurg growth

in Steri-Shield, organic growth a product double-digit U.S. From perspective, sales smoke had and of businesses. BU Management strong tools, from by growth And growth sources, insufflators, standout cameras, and implants. Endoscopy SurgiCount. growth and sports in Endo XX.X% included growth communications its was with sales a product almost in led booms medicine perspective, Waste light performances and XX% evacuation power

Internationally, Sage sales in X.X%, our cots, by stents Neurovascular organic sales led in of in in U.S. organic sales of of X%, and Neuro & constant growth products. driven solid had This growth in by strong U.S. Cranial growth U.S. emerging organic the growth by and sales MedSurg Neurotechnology business. included performances Vocera performances growth and organic of businesses. markets. of hemorrhagic all our currency had both X% which had XX.X%, of X.X% strong organic and strong highlighted solid sales included Medical which growth internationally. CMF guidewires. X.X% Spine performances X had the X% sales our and Orthopaedics had performance included stretchers, in organic U.S. growth

primary organically our very X.X% grew insignia business hip last performance fueled XX.X% the Hip of This strong U.S. same year. a strong comparable continued in against growth hip by reflects stem. quarter Our

grew strong the in very of first comparable of X.X% Our XXXX. U.S. against another Knee XX.X% quarter business organically

Our the Knee of robotic-assisted our continued our installed knee market-leading growth in reflects position procedures base. and strength

across strong with trauma Our U.S. business Extremities and businesses. and core our XX.X% biologics extremities, grew upper Trauma organic performances

Our Spine U.S. business led the Spine X.X% grew business. in our organically, by Interventional performance

the business XX.X% by and including installations strong markets, by and particularly most Internationally, in in quarter. ortho grew grew other driven Spine strong X.X% Mako organically installations. driven emerging Mako organically, U.S. Our Orthopaedics strong performances Canada

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

margin we of X.X% basis points easing XXXX. This of first XXXX. of Our quarter of XXXX. represents quarter of sales, higher than as positive quarter was favorability experienced as the trends R&D reflects Adjusted against XX pressures certain first continued basis points gross adjusted that improvement cost spending the approximately the of well pricing in which XX first XX.X% was

of was of basis in first continued and the lower growth. adjusted XXXX Our support our investments to was XX our which due SG&A points XX% discipline than sales, spending to quarter

favorable $XX basis a sales expense In invested points interest the level was by XX.X% of summary, quarter resulting was to lower the Adjusted for XXXX, XXXX. for and and of of higher million favorability of cash the quarter, approximately was which other our in million adjusted rates income. higher than XX operating $XX first quarter interest margin driven in income

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

full still effective we tax rate range the be our to XXXX, in of XX%. to year For XX% expect

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

in due and to be repaid has debt total prefunded. May million debt been includes that of Our $XXX is

Turning flow. to cash

and higher our be to moderately growth in expect sales unfavorable half results, roughly of our be year-to-date the impacted negative to commitment at to operations net impact exchange year, $XXX pricing from heading EPS for the If and demand expanding per expect will impacted healthy We margins, net into cash in negatively of earnings previously million, Our the rest the first the outflows. for guided full with share cash anticipate quarter volumes to products. X.X% year rates full earnings end we our normal to diluted of procedural $XX.XX year be XXXX be current momentum the the results be range being seasonal foreign we organic in of $XX.XX. our to and of capital to our Considering $X.XX. more first strong levels, range range now $X.XX year. near first our of is will now adjusted reflecting the the flat. quarter of X.X% the hold operating With sales

And now for call the I will Q&A. open up

Operator

Robbie [Operator JPMorgan. Marcus come will with first Instructions] question from Our

Robert Marcus

lot really a for to financials. but me quarter. maybe on on A ask nice Congrats about, two

volume the changes, growth. Kevin, same down seeing and healthy either the environment if would like any equipment, remain really globe sounds to it capital or hear and First, capital for love procedure in procedure volumes across you're up

Kevin Lobo

Yes. we're pleased the changed. really Yes, quarter and has first Robbie. Thanks, nothing in performance really the with

that good level book into XXXX. XXXX seeing that has capital of And procedures we're we our volumes in strong. order continued So remains very through the saw

large capital So remains or very robust. capital capital small it's whether equipment,

backlog, to gives the organic We raise have full growth us for sales year. healthy a guide the our nice and confidence that

Robert Marcus

and disruption gaining competitor business fundamentals And are probably while, from that that Is market? wanted foothold that technology of your the discussions some share to a a on been ahead merger? Spine the but giving launch you've that? nice is how and Spine hospitals in to And open see, a brought you the Mako I is maybe more quarter. to asked really hasn't and of improvements one in had

Kevin Lobo

Interventional change. tell quarter. the you Robbie. Not That was a Thanks, major Yes. high had a really would terrific business Spine growth. I

Our within won't has launched Q well. until system fourth Mako, really the Spine CoPilot Spine, as be and good the guidance up technologies The enabling picked quarter. the momentum

disruption having or that competitive is early competitive And that's not an days. of the very merger wouldn't really It's yet. really still So much much an say having impact impact. of the I

remarkable, for good our Spine a number and So good number but business. nothing solid a too overall,

Operator

comes question Securities. from Biegelsen Fargo next with Our Wells Lawrence

Larry Biegelsen

a being bridge on much here. was of of at headwind. you one quarter help obviously, other the how that Can maybe EPS kind for, of lower? the that midpoint. of nice How Kevin. think, below us operational? A raise just is from Glenn, a line, is One income And little much I the greater FX for kind about Glenn, $X.XX of coming

So had just to the pieces and I raise, one kind follow-up, of led that the $X.XX please.

Glenn Boehnlein

Larry. Yes. Sure. Thanks,

at I this OI&E tax think we favorability our what what if just also in with happened and happened look had sort you for some rate, of obviously, quarter.

really $XXX that think XX%. XX% I we're and OI&E fundamentally, is in rate targeting still million between still attach roughly and

So provided back in margin holding built sort we're guidance still of had below guidance the into our January. the we line op we to that initial sort of that

you back to I of if -- that. we're drive And think, programs seeing the about feeling off that and that of then kick that think in the just positivity around top that place earnings get we're look good at terms obviously, lastly, momentum put it, we XXXX of line, leverage the able number. robustness to how to we're in raise to we're honestly, the the we

And really EPS. us that of us in give to raise all give the to combines so $X.XX that from really the midpoint confidence

Larry Biegelsen

kind of of help to I'd you potential you if And can impact protect having here. kind share what your about investors sure the not And do any you growth willing Kevin, right tower on really business like long business. now, exposure potential your Vinci it's know da to are helpful. term? of you're hear That's Endoscopy what to I'm from the Obviously, impact strong is? V lab concerned

Kevin Lobo

concern, this to I'm Thanks. honest with a you. little be bit by Yes. mystified

new the strong attended years have to is this see their will in we meeting, you a the differentiated -- overlap going enable very and very our could can businesses both grow that endoscopy, If at we're with have frankly to for rates that a they come. whatever continue Sage's performance year minor. and in they're you clearly to product, solution growing

play today. We in procedures, frankly, multi-specialty. robotically our aren't We are most done of being

also in the We clear are fluorescence leader imaging.

procedures, to recently, light do fluorophore light most company which of the Just XXX. for we're Association able up that we had Cidolux, where Thoracic that up that we partner cancer American the Surgery, lobectomy can be lung this to with that, can new only

that going overlap, -- very that are to many in to very years grow playing spaces both doesn't for Intuitive strong come. of performance but and safer are to surgery, continue with can So us It's mean many, can't demand really with this we robot. their surgeons little have for

So not me, to and mystifying at me, this all concern division. for is, our a frankly, concern endoscopy for

Operator

Our with next BTIG. question from Zimmerman comes Ryan

Ryan Zimmerman

ask about the guidance. to growth want I and the organic

easier you XX% the growth comps quarter where comps that look organic the at balance this the the kind the midpoint. through of essentially versus X% guiding of the If you're do get of and year. The

of could the about remainder line, better this, wondering top to specifically year. And wants or I'm and we for philosophy performance think so performance for guidance just talk take the the the Kevin or Glenn given whoever be your view what

Kevin Lobo

Yes. Great.

fourth at easy had those comps. year, fourth I quarter So certainly, year. you monstrous that, was if were a last We quarter wouldn't look think -- our last pretty that

concern probably there have, And day is right? this lot in It's raise out marketplace. extra There's so uncertainties feel very the good comps selling is extra in And business. in QX. We appropriate the about think we pick we up and at time. a I one day selling an quarter, this and do that biggest our only of QX an

things on second go the outlook the how you see the Let's update we end quarter, for can at of year. and the further

Ryan Zimmerman

pointed. Kevin, M&A And your on enough. were Fair comments pretty

previously. areas highlighted You've of a number

those reinforcing today? if areas as areas Because out I some outside specifically been at done, think of you've called you that that you or Are tuck-ins I the look it's same there X just actually before. was X those of X late.

kind you're the of M&A the just targets so about for how for today? curious thinking And areas

Kevin Lobo

Yes. areas, those Certainly, about adjacencies. those when I are X talk

our about always adjacencies, of with have right of you we our majority those core to technology, be healthy are an And the I'm what think adjacencies. as that's incredibly going we X is my businesses deals what beyond that, tell And existing now do. have supplementing deals. sort top of So basically calling the new we priority I'd pipeline we

through really Now doesn't tuck-in go There's the rate as always a you of get these right? washout are feeling in But about the variety. always pipeline pipeline. course, excited processes. mostly realized, They I'm

Communications And business so they're our just Hip for business. like or mentioned the one our I

couple for most quarters. see of occur to going at those You're of least the next

out, I of high Beyond that, if still talked has really those Nothing about areas we changed do are decide that to interest. other branch on front.

Operator

comes question next Our from Joanne Wuensch with Citibank.

Joanne Wuensch

up unpack you sales hear shining particular went that. the are those love areas: bright real Could quarter. nice two I'd the Very One is other behind And what then up of stars. XX%. other, to is Both instrument XX.X%.

Kevin Lobo

across really, a Instruments really bright you're I'll I The was as Yes. as other and instruments, Sure. Orthopaedic the it are about both division really across can let Jason on well And ortho. start talk Technologies board. the right, these shining the stars. Surgical quarter, had and Instruments fantastic

more smoke been the great very almost If continued but U.S. have into we terrific growing great see especially just has states to really as high internationally. is execution, Obviously, commercial that we through maybe And you and not which mandate have that and next very market we growing really in this growth to look evacuation, of tremendous at XX%, we also a rest at see evacuation. continuing, year growth momentum. robustly, the the that awesome. was the year, XX%, smoke double-digit And growth but decide

really that push. big was So a

that launched We combines heme sponge as as a loss well the of quantification coming. plus new Surgical the we've also have the Gauss product blood SurgiCount

received combined customers. and by really our which elegant one all really is it's solution, So well being into

So Technologies. information. roll, the those extremely to the within two have to Neptune continues Orthopaedic catalysts over probably Waste then flip Surgical but that's Management not biggest well. you new Steri-Shield are And we doing if Instruments,

do go that's Our obviously, and it, the very other power and continuing years the launch know products about new well still, call all you just in, tools, that's as about really pulse last X.X as did well let's to lavage just division quarter. the years. the very, first execution a if and flagship in It's very back consistently, you it so of commercial XX-plus really the Stryker, again team. great by it instruments been delivers

Jason Beach

Jason. I'll here. Yes. take other it's Joanne, the ortho

So record remarks my guess, like I comments, just a a be we quarter year. to of I prepared of first -- in couple additional had the would said, installation quarter this

we last If you quarter had fourth remember, a the in record of quarter year.

seen Mako the direct-to-patient is of results front. the on really I out campaign. So well good going that. on We've the momentum really commented

So we Knees well. the move of we as we as translate terms will like and what about feel forward good Hips in this business it, and

Operator

with next Chickering question Deutsche Pito Our comes Bank. from

Pito Chickering

Looking international growth Europe on growth, currency can the Japan the international like higher you're talk about for think X.X% lease the And about and basis? China? seen how what seeing you at we versus markets quarter constant the using in should growth this a

Kevin Lobo

Yes.

engine So it bit was a a certainly, year. and be I in last it quarter a Stryker. been, quarter, because Europe tell would first than really continues has we the big was you that softer to little had for growth

So related. do Europe I up going really comp expect in QX. to more QX, to QX, is continue pick

We And was really are overall in are all -- sales but in Germany first the quarter. had regions and So to quarter, Southern U.K. a Europe going first the and year a bit standout the run big, other Europe. big rates the in healthy of so a in last the be we really fine.

not have year in international. it's at all So concerned to strong issue. We're to international. I'm about just me, another our a comp going

about sorry, really else talked here? what was you say, Europe, you did So what

Pito Chickering

and want what increase areas hospitals portfolio for sort margins. across upside CapEx has spending. strong the most your good the hospitals And for think in then you of our dollars? hospitals of country seeing increase guess, Great. do CapEx the to second was question I legalization the We're

Jason Beach

at in the I results you quarter Pito, guess capital see is we in overall Yes. environment, would I what our business as here, first our say and the look strong. can very capital in

So we here board. see the across opportunities

continues think be that mentioned here. backlog elevated our to I we

the So go throughout we expect capital we year. as strong

Operator

next Our Shagun Singh question with comes Chadha from RBC Capital.

Shagun Singh Chadha

extensively key you've QX, to in from strong seeing super products into and drivers what's factored cycle current for of talk able is think about beyond here growth about I quantify investors how QX. guess to And are you the about of Kevin, Stryker new us in for the innovation, perhaps Are cycle XXXX. contribution question results we guidance your innovation. talked should

think years. and peak are get I you've 'XX. and year X the indicated you in X there I And think 'XX

how So about should we drivers think beyond growth that?

Kevin Lobo

in of Yes. we're rhythm question. refreshed. just time, collide would had And What I the Thanks of innovation. number you constantly sort is same the this of for but they're tell being products constant at we a

So think I as about fleeting wouldn't moment. this a

we'll If as XX.X% and have next chance year. to no as not impact the of next as going launching a It's just have not another that. that year on year, we'll have guiding this we It's an really really then in applications much you year, We're and to impact innovations more going see. keep Pangea this impact but think Mako to We're rolling of X.X% other digit, to LIFEPAK impact. potentially this The you're next about year. certainly top just much not XX. 'XX, year. as year next in double another to have just this year growth double-digit 'XX, yet, get

a are top a were is end you as us from assuming we tank the in continue acquisitions come line conditions year, organic continue stay innovation, pause rhythm, product be no ahead. growth a refill to new because to X% our sight with what think growth know, then as in this years rolls organic expect in as this to market that with long high-growth in and of we we growing invest just we're bit should would roughly where a high in rhythm first going we acquire similar, last of you I we're kind we as we to So had will and year assets. into year the of that the And active contribute as that to after growth,

so -- adjustment, kind side, the new a this a come going peak, other down absent to not in kind -- some we're least I'm of reached while. So some as this market look a we're on kind for is at of we -- normal, of and at starting

Shagun Singh Chadha

really ortho on side. then a follow-ups And That's of couple helpful. just the

on both robot? you updates any Shoulder Are year-end XXXX Mako for of and track for Just still those? a and for Spine on launch 'XX

Jason Beach

Jason. it's Shagun,

Just standpoint. And CoPilot, prepared to of for I'll QX there. from -- Mako my back a year. at looking end about will remarks, As launch think be Shoulder, a we're it we and right? Mako Spine go launch the this

Operator

next comes Kumar Evercore. Vijay Our with question from

Vijay Kumar

capital one right? that any any you seen for on and on the Or backlog you sort supposed was Did was Kevin, side, shortening think How on in I procedures, elongated. backlog? to capital time, cancellations I you of scheduling that comment Have [indiscernible], sale here, had the you the comments contribute scheduling, quarters? side, the can is elongated? in historically think on taking On I that's both the trended? procedures that mentioned come coming of the something scheduling LIFEPAK. which

Kevin Lobo

call it hasn't a Look, much. just market. It changed stable really I'd

think about you lists. If waiting

gotten think of better about is over 'XX. If the course staffing you continually

it's of say 'XX it It's stable just all. defibrilator I the -- terms 'XX I stable elongating. we market. in overall that of don't 'XX, as marketplace. it's kind at of would sorry, I see got just new -- So saw approved. through continuation very And shortening see the into just don't a

not really to our that's So contributor big been backlog. a

just backlog products our even businesses book healthy some of of instruments Endoscopy. existing across medical, is across Our in a of the all order

a we've going 'XX. but -- had healthy had We it any of new into kind there So backlog. really spike, wasn't

going We into 'XX. it have

continue good orders. get to We

still the coming a but we're yes, at in orders very out shipping healthy a at So nice rate. rate, are

obviously products. and more these and the year not give burning That's as really backlog with could only potentially going and of we're kind rest any least meaningful tailwind us through to continue of So gives for for growth. new us of -- at some if spike through orders that this confidence

Vijay Kumar

you. in the looks Can expecting Glenn, helpful, was That's for for free should we what cash just us be quarter. fiscal Kevin. some kind remind 'XX? you cash of timing And one element. there maybe Free conversion like

Glenn Boehnlein

Yes. Sure.

and you think And timing I in saw seasonally what higher was QX then working that of QX. in QX we sort QX, just between just in cash capital occur. outflows have

that November, of free overall an no the targets conversion that. discussed to back and the in that flow would be analyst So impact basis, that meeting On change there's at the we the XX% cash XX% number. to

Operator

Our from Bank of Steed America. with next question Travis comes

Travis Steed

Congrats on good a quarter.

On but insulation how ortho? the going gains curious, leading a for big is And into of many competitive Mako installations, number, in share indicator curious those are that accounts.

Jason Beach

I accounts. Jason. accounts. it's will won't competitive continues in competitive for going of number is But number terms competitive and a in disclose the for reasons, into that of us big we the terms into for amount us I going necessarily Travis, be mean say to winner

Travis Steed

where that acceleration been product? evacuation, XX% Great. evacuation reps that if it's smoke the was at? more And just that there And it's change of pushing in that curious versus bundling if drove the across portfolio are growth a kind in then smoke better running was step big something I'm

Jason Beach

we teens, I Yes, here. to said that than The a Travis, business grower today say smoke-free states, what be, couple remarks. XX% different higher in prepared the I'd it's Jason. continued things of in think, high evac and it's similar to of has kind smoke

into tailwind future. for we be So will a the us, think it and been it's great

Kevin Lobo

that terms also demand tremendous of able to had supply our contributor. also the and has We've improved Yes. chain really was had, in that we've meet being a

we've only to a and our strong So not to a in but has quarter the deliver and in had in puts kicked supply really also us position in that growth, ahead. in, tremendous way, tremendous first chain quarters good the deliver demand

Operator

question next O'Brien Matthew from Piper comes Sandler. with Our

Matthew O'Brien

software modest don't Is sounds Just it then, is X getting Is into incorporate out And it's issue? I pushed Mako if that right? hardware like to a something it X it Mako real causing to else Spine that's know months. you're is being is this -- about issue, just going push? quick,

Jason Beach

keep in mean half time right, by I been here. targeting relates months. can We've it a Jason. from the to sometimes shift it's as regulatory of week, things there's back lines that a couple standpoint, always a Matt, FDA launch mind,

wouldn't consider time a line. this So I as change significant the in

of or year, As about this guidance spine certainly that guide shoulder we relative terms assumed the to you our launch. the there was nothing in think have for

as about So that. no impact there we think

Matthew O'Brien

And because that right these backlog all cetera, of way the Got Street the is defibrillators, is new double-digit couple to is much for business there like years? the versus near the it is you said of over growth you X what mean, tailwind coming backlog? now? is And then that Is MedSurg et a of quantify that how nowhere expect think, on products side next got it. double-digit for the have I MedSurg I And needing things, there. the how growth years to you've Kevin, next any significant

Kevin Lobo

I number environment. based environment. that right? It market transcript, in as if innovation capital high-growth and will I terms well have we that. growth. give new double But is that on market of don't So of our this did -- double-digit stay a healthy kind the Yes. check that fuel going the What cycle, continue Look, all I products I say think but are precise I said to have didn't for to I these stay we're on growth to double-digit could does depend could. elevated the at in as the in market, of both we procedures level, no there's Sure, range? of the this stays guarantee kind we this time.

And obviously, But then similarly XXX defy we impacted. whatever down we're a be the year, that outperformed on the market. market, you is. does to obviously, it's growth on our know not can depend would going If gravity. and the level, points So market falls depending it the or you certain basis to number

business. So don't very But precise the a high-growth to believe I double-digit us about I was with over for continue bullish ability that to feel be I X years. do

Operator

Barclays. Matt Our next with Miksic from question comes

Matthew Miksic

looks comps. mean last is mid-teens against least to which feedback that me is organic about of growth And just teens, it quarter. congrats present growth lot And on like a organic is really year getting double-digit at all really the low to I strong that us. I'm a to low

So on congrats I and the maybe nature of robot if follow-up, the Mako I had launch. one the momentum. on the just continued could,

If picking if that some about platform is of of momentum you could will in then 'XX. either or of And growth some a expecting in then coming launch back in and to you us could talk walk quarters that limited to the it. Kevin, start of of new maybe couple XXXX? the the you're next the sort about other I appreciate aspects of in and that half through, products excited you're that they market kind up adding

Kevin Lobo

Thanks. that LIFEPAK talk new And few Jason, highlighted couple Trauma come. this to quarter, we which going products. are we'll years about exciting a quarter for to a both business, are least every our at with of of XX Pangea sure. the to contribute you Yes, products really super and in growth to

the spine that two Mako, the relates will enable to so the guidance. a it parts. robot One be robot with actual is will pedicle new screw As attachment part different

trade guidance Q the is sold that's today. part second already The being

a camera. It's used that lightning very So is procedures. first-line fast

NASS. being It's at it spine do today procedures. navigated sold to saw You

the that, you from bone to with cetera. able et So Mako those able feedback And cord, will to do vital spinal then haptic components CoPilot make to up to close be will getting preparation addition dysectomies protect to system. and two Spine be structures, product in the

camera that, to again, the be -- So the Q is same that compatible going screen. in and with

market Guidance whether be is with the So system it's really launched. Guidance bone half placement you're the pedicle then Q with second that already seeding using we're doing the ecosystem makeover a of or comprehensive Q And to screw the the do and will X/X preparation.

X our the are selling those part So we're technology enabling pieces of which solution, today. of already

as every well will So growth, Q, to be selling used the we're is of part Mako. as contributing solution spine it's time copilot with then with to able both which be our that

for things So hopefully, that clarifies you.

Operator

from question Our UBS. with next comes Danielle Antalffy

Danielle Antalffy

months I bps mean, you Glenn, on just operating for for guess, a I based this start this on is it's early, question expansion. just I to -- see probably year. about strong know that the XXX really X you ago. margin guys target a Congratulate

too greedy, to are inflation presumably trying actually here not from of only to super QX, better in ease, So getting it year-over-year as hopefully. to things starts cycle relates but XX it like continue bps product be sounds to

based just me. I you can about comments So target it did bps any that's you XXX for guys that make guess, here in And on QX. what

Glenn Boehnlein

first, kind Yes, November. Day the at XXX 'XX next in X we're the so we and January. just what we out back back over that's points target years, 'XX also in of Analyst the the basis guidance brought Okay. clear, It's presented and is

points earnings rough given math, basis think that we basis this expect we this the in on think of you that for out. year XXX XX stronger based half of in sort the approach. margin first we our just in to the you'll No of is as if this overall sort Seasonally, I realm points half points basis year. second or about the seasonality how correct, you're the plays plus year, of start year. great XXX just do change our a guidance, see as than And we're first see expansion be to plays out

think in expect likely in had in did the expansion seen think through expansion. we'll will and about margin gross lead balanced our the you expenses. And more will you in be XXXX that you've of see more coming we that op gross price. we've then margin margin XXXX, XXXX, I between what goals lots place. are programs of and we If There margin. we expenses mean, operating saw results have we

site, to push honestly, high the low-cost We growing natural piece that look when leverage at you if just efficiencies have of then harmonization. And we're the also services levels, in-sourcing. we IT strategic a equation. drive that continue at shared We'll also greenfield this is that,

performance. about QX we're the So excited

We will through remainder into be the next this forward. year, on it we'll calls quarterly and play still working and of you the continue to year as update earnings

Operator

comes Matt Jefferies. question next Our with from Taylor

Matthew Taylor

could talk little more about catalysts acceleration and they material pickup those a could maybe frame you bit Pangea products, could how be? or I and see upcoming two LIFEPAK was hoping we from has any

Kevin Lobo

marketplace. Yes. we've core the so trauma, historically we look extremities But -- you lower at business, trauma, and haven't if Well, extremities, the I'd excluding look the been leading trauma company. at in been you plating if company nailing our core upper say leading

more clavicle launch, pelvic the some trauma variable of we arm angle an the nailing. it's amazing our terrific by really procedures versus of the This But places, comprehensive have is in shot Now our plating, which, platters, product half is products. will we plating didn't system whether are than a have in plating. and comprehensive very be for way, a

this far. Core in We been already And incredibly about done the time. so Core an Trauma leadership from business, We high-performing take will our cases plating excellent now comprehensive we surgeons. -- solution. a has Feedback fabulous we wildly us roughly are And it launch. fabulous Trauma. so excited have We've XX have

have to start out But out. launches to early fully in the big some It as have it going done the procedures will QX, start build these beyond. impact an to of of and kind an going impact, to sort QX have and impact see as QX. We of time We're sets too obviously QX. more won't in to you're to of take but roll be

sometime as May, we'll relates a our it LIFEPAK, preparation full force first are and our bringing to for launch we to June. sort have in of start shipments in in And sales

feedback. firehouses display certainly QX, were So People that deep conference, impact there we're rows really getting QX, product looking fire at show and a an X did won't of we QX, much at recent fantastic overwhelmingly all be the -- product, positive. in but the going it was into X is feedback started and the

for launch. right and launches kind point. price ready the we're getting the so because And And of building a now of product these

long-cycle at defibrillator replace equipment XX to we It's capital X and know a how last see next incredibly to impact of but going performing that. a big -- already we you launched to big year to see years obviously, probably sort going as doing to see last The almost exciting. an long X was impact see is be that not year, you're after ago. some more years this lot These time, Medical they But You're products, some, would this in see you'll that. as incredibly the are Stryker, you'll well. and going we're

So fully really modern a is huge product. and there market this replacement for featured

Operator

Cronin Caitlin Our next with question from Canaccord. comes

Caitlin Cronin

Congrats quarter. on strong the performance this

you can those? the upper refresher products year? noted on to a changing the strong and your ruling Shoulder trying with portfolio coming extremity, new CMS performance Any And patient also timing Just earlier we dynamics of there. in and the this ASC's hospital get

Jason Beach

Jason. it's Caitlin,

be this for think upper grower to a As fast about extremities, we us. continues

for think ASC, kind and from we the the change business will expect this of As we about transition a continue that in fast-growing opportunity no us. be And perspective. to

Kevin Lobo

products relates have Yes. launched. to last X product the we talked And being it I launch this about we that full partial are launch call, into going either think launches, about on are but as we're that in

We have is tractor really a exciting, a perform system, stemless reverse product. which

We hemiarthroplasty have is the product. which pyrocarbon

And We which Jason, the is a to surgery That's have one, the room. going I year. last full launch think the That launch. lens, it's operating can visualize the move hollow you number? in was fifth the limited to

Jason Beach

were the things. Those were the those --

Kevin Lobo

call, That are been we in a look that we continue -- to any at that's the momentum highlight we not fifth change Those seeing right remember that a you four single to have ones. but I continued growing those now. this roughly one, And if -- I continue. XX% back all every But the go be all think and last where we very to of the can't business strong is products. a to there's did main expect dynamics And tremendous quarter. expect so market first quarter. momentum, real But

Caitlin Cronin

your question post to what close bringing Great. strengths just to that really a forward? Hip you on now And then see the going do portfolio going

Kevin Lobo

terrific look for eventually tremendous of will throughout if and they're were dual-mobility, the to Europe, they France in some not then share at even dual-mobility, of products to France, market it United but they firstly, the so portfolio have be well known gives a those in products business bring originators our looking Well, you Yes. and States. the us just of certainly, Europe those and

you the than parts other in shot where in So arm historically Europe had gives of us know, it shares really world. lower market the a as we've --

about we're this very products They're has of product. and excited So behind received been them that in excellent. feedback are -- a really marketplace. lot the are The so have well far very differentiated history that from surgeons

Operator

Newitter with Truist. question comes from next Our Richard

Samuel Brodovsky

the quarterly think expansion as that floor we guys expansion commentary year? about But of basis stronger back it think step should half. is just is Sam the earlier in on as reasonable Or second this points think on quarter, a gave This a for actually about basis on to the margins Rich. XX this about you being in appreciate XQ? I stronger we a or being maybe

Jason Beach

I a a you additional what half of I'll quarter, wouldn't that QX expansion XXX full margin about have quarter. Jason. than here. on this think it's you to but the could say Glenn certainly comments that in would take every expansion every in one, It quarter basis bps getting margin Sam, levels Certainly, standpoint. less again, from Glenn's saw as pile weighted. a being second But imply be to necessarily it to expansion and can the anything margin on year you

Operator

comes Jennings next Joshua Our with from question Cowen.

Joshua Jennings

by still optimism Hips? the one follow-up. thoughts headwind of XX Any just and into Orthopaedics pricing. of experienced just And guidance device to units. pricing us like joint it And there's macro then may seems can experienced at -- and new of -- Knees be details the updated then you era there's industry that kind your any think the bps the there? total by and in pricing chance that AOS, And with a provide hoping was help more dig pressure I on the Spine franchise more

Glenn Boehnlein

I -- if you sort are sort do two pricing, Sure. we of think mean tale of a about there cities. of

through a provide gain to customers. work of On certainly we that us there's are and generally technology, we premium the to approach able contracts allow on MedSurg pricing that side, bands placed pricing

But and been feeling what the in we're that it's even has I think business, discipline declines. On And I we ago had contract would Five as closed now would a side based we years as Mako you're that say say price X% Traditionally, of ortho price necessarily to We're of but range. we the side, or customers as right. our we in have system. positive, little bit X of that sort that the a years ago, on were well a we at the about ortho to declines ortho anticipate ever were place price will our that business. with X% on don't of feeling of looking the market less sort we about negative. negative sort being ortho get put impact feeling of confident maybe less performance that see are

Joshua Jennings

just your we markets management knee outlook and a pre-pandemic those share of interpretation and growth from orthopedic comments of in your era. a the was level some think follow-up. I teams markets could team to could I was hip our maybe on other relative you And hoping that see the higher

here and the up. thoughts whether about strong Any half procedure And Just devices been second just year, on in year? the industry. any updated utilization thinking we in in should in volumes follow macro this second And to thoughts a or be there's concerns orthopedics after -- the wanted about slowdown also utilization broadly there? a half last headwind

Jason Beach

I'll I'd different a one. here. say Jason. take things this it's couple Josh, of

we view XXX here. last said markets Day that that year, we digit that. area. changed XXX think bps about to would And our above in if has ortho the to really would at Even all call not mid-single grow, you outperform of go market, back we As Investor the November

looking we feel about as year, So the think good that. ever the markets, how that's year about we and this we're of full at as kind as

Operator

Our Ranieri Andrew final question Stanley. Morgan with from comes

Andrew Ranieri

you. for XXXX? any mind Golf portfolio? about Mako, you're you're kind And the in like can two the product color plans geographic you more trends on you the internationally Mako system think where levels And you seeing what just of outside seeing the Surgical you just then us in product, for U.S.? just within utilization take second, But that. Kevin, can also with you expansion with MedSurg any really next give your on the talking touched Would

Kevin Lobo

Great. Okay.

X in years international, is about of we the what or saw on kind same ago. X firstly, dynamic So the seeing we're U.S.

you start do installing are procedures, a And those indicators. those, We you leading as and be growth tend to then large they see to implants. the the in number of robots and install

Even have to kind in later starting the really that's we are there it's changes up parts very of we're We and up of target-rich. it Australia. than Latin for to us, as a really Europe. are and And Mako. to but that in in picking the It's pick small, we've is say up. years pick America. in up, picking China parts X India, picking in still dynamic. is were still to still our in very already very, to it's where a Europe on overall, starting that's be for new really up that X, sluggish been cycle some but sure, market hospitals fire is Mako Korea the there in of had in late it. -- big bit even Japan, But story. own well. the a ago, with we U.S. bit us I'd opportunity U.K., to other structure and made We're a So They demanding strength are has opportunity. Canada for were able address

we're not installations. of so just number And very excited, with the

you it have gift really on a this that a every where You've seen after multiple in significant for is that quarter keep on is of quarter. But high-growth quarters international will installations. installations, humming We've precursor seen market giving. large

And still many So in international very opportunity. markets. early these it's days of about the excited

important the so excited thing in We're So, far the good. frankly, is utilization. most reception so

at robots sure markets utilization the for the high today, they as frankly, And it's country And make we used picking are robot highest is the installed, are so up in being the rate. these as India, other highest a in But world. being well. with

Gauss. on was question your of part second The

interface that a quantify is yes, had procedures counting So yes, was with sponge product in and of that search -- of our health an well measuring easier and as for left canister, Gauss. I'm for AI general fund we're different we accounts, surge to sponge care We've to are make they those lot that and this really the combine sorry, interface to solution But this Obviously, the that improved in blood as worker. accounting. other the surgery sort the acquired this kind delivery excited but hemoglobin about -- account -- it the so sure funders also the so also to make use solutions, just a a body. tablet. It's not this about tied discussions tablet talk what we of devices used a on that and connectivity to about to ready There's the how other There's common we going connect will lot tablet the have have we Obviously, a to bed Vocera, the connect premature inside for in the both being other ideas with be. of Vocera. us yet you about have with about lot and for can those what talk little else discussions particularly a Vocera. badges It's what to we there to Stryker, system that are now just to Vocera are. that connected other can

ever MedSurg errors launch Did IT can products of bringing And divisions. better hospital we on solutions in for then we I and you our for think our reduce conditions. many think portfolio, customers, it. really hospitals? and I'd is buy the rather the focus talk Safety outcomes a a we're are I acquired of think track. How really big I But have workflow good that those our we ready And well at if is improve as and clearly, looking what focus. an at can end. surprised this for that how across about will acquisitions continue the workflow organic and obviously, that's HIT. but solution going our to And both was foray deal but as be expect into don't feature to No, on to the HIT then, really be we Gauss I bigger going digital which is within be innovation is. app continue future. do an pipeline, our presence world, Vocera bolster the a within to iPhone, And that's looking don't

Operator

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

Kevin Lobo

Thank for our you joining call.

As with is look Thank sharing you. to July. be results year shaping to forward you Stryker. can in for see, strong up XXXX you We our another QX

Stryker (SYK) 30 Apr 242024 Q1 Earnings call transcript