Stryker (SYK) 30 Jul 242024 Q2 Earnings call transcript

Company Profile

Participants

Kevin Lobo	executive
Jason Beach	executive
Glenn Boehnlein	executive
Larry Biegelsen	analyst
Robert Marcus	analyst
Ryan Zimmerman	analyst
Joanne Wuensch	analyst
Travis Steed	analyst
Matthew O'Brien	analyst
Shagun Singh Chadha	analyst
Matthew Miksic	analyst
Steven Lichtman	analyst
Vijay Kumar	analyst
Matthew Taylor	analyst
Joshua Jennings	analyst
Danielle Antalffy	analyst
Michael Matson	analyst
Caitlin Cronin	analyst
Jayson Bedford	analyst
Andrew Ranieri	analyst

Call transcript

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

Operator

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

Before we begin, I'd like to remind you that 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. include financial will discussions the certain measures. non-GAAP Also, X-K comparable measures release now can to on an the found turn financial directly most Form report to current press Reconciliation over be the the Mr. GAAP in to Stryker's today call filed with exhibit SEC. I'll as today's Executive Kevin Chief Officer. Lobo, Chair and

You sir. may proceed,

Kevin Lobo

to second quarter Stryker's earnings Welcome call.

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

we saw today's provide Jason growth trends second nearly For organic quarterly sales strong I'll comparable. with product the some the comments, provide additional opening we to call year's our then XX% the by followed during of updates. call, opening regarding results will X% and before delivered last quarter, Q&A. In quarter the Glenn details against

MedSurg our high and commercial our diverse Our single-digit Neurotechnology Spine. broad for both demand team's and sustained across growth our performance and This included products strong business reflects and Orthopaedics performance execution. model,

well U.S. Our balanced organic between with growth and both roughly the was X%. growing international,

organic accelerated with in emerging and knee were and single-digit Australia, high Our strong neurovascular, and Mako first the sales by Japan. growth Europe, neurocranial instruments, growth medical organic growth our and led extremities in businesses. Internationally, trauma strength endoscopy, and Zealand in from quarter, our results markets, double-digit New

our our growth. we we markets continue for share, key global catalyst long-term As as expand to see a international

the adjusted to breast localization we for offers and fixation front, medicine $X.XX, delivered M&A of tissue we of continued acquisition ankle technology into year. enhances We back completed XXXX. technology of to portfolio. July, Surgical. primarily the the deal cancer we as second half the margins. location of endoscopy which our continued On during of tissue of the expect acquisition lesions sports the compared strength we sales a EPS In activity soft specializes reflecting we on differentiated pipeline, about surgeries. quarterly precisely yesterday, continue our our the well our and closed remain our execute quarter was foot innovative offense. Arlon, We Moly as Also to performance bullish Moly and for mark products procedures. move that by allows soft Molly's in of our This as surgeons growth XX.X% removal wire-free, driven of expansion

volumes Finally, we full of growth full share year for of anticipate capital and guidance and to to and reflects over innovative raising growth are sales of product backlog Coming XX.X% turn now our $XX.XX. portfolio, across XX%, Jason. our of expectations year organic to the now sales X% adjusted globe. I healthy commercial XXXX, our off execution call earnings updated organic strength the XXXX in per the $XX.XX procedure and will passionate

Jason Beach

on select an on quarter, by environment, and demand highlights. Thanks, update the robust patient capital strong will Procedural providing adoption Kevin. My increased product today robotic-assisted with surgeons. healthy focus activities surgery the volumes driven of fundamentals and second remained comments current in

products the move in also our half backlog for continued elevated the Medical remained of to Demand expect procedural capital demand continue in strength with year. into our and we We quarter divisions. healthy the as Endoscopy second across

robotic high we and reached quarter Mako performed Triathalon. date U.S. quarter, second X to the across total our with the Continued ever in procedures to utilization worldwide Also and interest for installations Mako knee globe. in contributed patient best the with over in million rates

knees businesses. utilization We our hips in expect and growth the to installations growing continue sustained and drive momentum in will

in enable nailing trauma above-market portfolio highlight and sustained our innovation product and our growth recent our innovation our of the introductions plating commitment system complements to durability cycle. business. comprehensive will core Our Pangea market-leading

half of ramp the U.S. We by to launch full reach expect continue second and Pangea availability the in to XXXX.

drive to of significant a our product Next, continues second launched order the LifePak the our our the strong was care quarter excitement and marketplace. benefit multiyear to have and unit near division. This within Medical book, end business flagship in believe will defibrillator it a with emergency XX monitor we

includes this Spine CoPilot, guidance when anatomical is our auditory our development to Guidance outcomes. now procedures precision we on Glenn. track and technology Spine. and sensory is important that, announced safety call ecosystem. end spinal that the software and during with Mako at is received in launch providing support of to smart an to patient also shoulder year. With FDA Q morning track introduces Mako approaching instruments Spine clearance over we the the enhanced Mako pipeline, CoPilot which on This will on our designed boundaries turn Lastly, is for featuring by launch to and step innovative which powered CoPilot QX X I alerts to surgeon

Glenn Boehnlein

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

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

Average compared XXXX. Our of in days favorable in to with X.X% same in pricing. from We X% a organic quarter XX.X% sales line the quarter growth the had selling impact XXXX. are second was

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

was had currency a positive sales markets. most X%. X.X%, across of driven organic was the Foreign U.S., international International unfavorable sales sales X.X% organic sales. In momentum by on impact growth our growth a

XX.X% partially from EPS and of $X.XX. sales up of was foreign by by XXXX, translation, quarter offset higher driven adjusted an in had which Our impact unfavorable currency $X.XX the exchange

which This neurovascular half capital second had growth of double-digit transport of sales strong reflects growth growth sales neurocranial growth bipolar growth organic MedSurg performances in forceps businesses. products. And strong of XX.X%, of led sports will of disruption and segment I performance. was Neurotechnology waste of mill, U.S. this U.S. around craniomaxillofacial included evacuation U.S. this with products. included led to offset organic sales in In and growth had growth and power led by U.S. platform From sales was the our Geographically, highlights supply Neurocranial year. X.X% sales medicine, and bone by Neurotechnology and and products. Internationally, and organic sales had and quarterly growth success X.X%, the in our growth Medical emergency instruments, constant slower in in flow finally, by sales organic double-digit knee business. which of of double-digit was due a some sales its currency product recover performances U.S. somewhat Australia perspective, had organic sales quarter, the and XX.X% sales organic growth which business of organic growth related and by had and strong X.X%, had had communications its currency of U.S. provide by growth growth Sage Steri-Shield. of MedSurg which and by installations, of U.S. of XXXX internationally. international the businesses the included Surgical in our U.S. China, organic of diversion medicine Japan. Orthopedics XX.X%, and X% of Spine in by timing organic strong Neurovascular sales driven with some organic organic led and continued growth of XX.X%, tools, in Endoscopy the and Endoscopy Now X.X% Sage growth organic in business. sales growth growth Technologies management, growth. Instruments shoulder products. X%, had X.X% the constant X.X% to X.X%, This smoke led defibrillators growth X.X% core its and care sports sales will growth

position our strength organically, and Mako the Our U.S. of in installed knee market-leading robotic-assisted knee our grew business base. X.X% procedures reflecting continued

hip our business X.X% by U.S. film. grew fueled Our organically, hips Insignia

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

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

emerging robust by Our installations. Internationally, Mako particularly U.S. most Orthopedics including momentum other in ortho business Europe grew driven Canada, Spine X.X% continued strong and grew XX.X% and organically, peaces organically, markets. of

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

to primarily margin this positive than pricing of represents against Adjusted approximately the manufacturing XX sequentially basis higher second quarter of points improved was and of points reflects approximately efficiencies. and costs R&D favorability of XX X.X% gross sales, points trends as adjusted the and was XXXX. This XXXX XX.X%, first which of spending Our quarter of quarter basis basis XX year. second and the favorability compared material

quarter the Our points which was adjusted favorable of basis XX.X% was of second was XX.X% XXXX. In was adjusted the margin $XX second favorable of interest in of income and invested SG&A $XX with our operating summary, was which XX approximately million lower income sales, XXXX. quarter, the quarter for consistent expense other our driven balances. by to cash the for of XXXX, sales, quarter adjusted Net million than

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

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

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

came that debt the we repaid May. of million $XXX During in quarter, due

Turning flow. to cash

and and of to offset be from changes. on organic million, procedural products, a to positive Our reflecting healthy working by volumes $XXX impacting now of approximately the year-to-date capital anticipate sustained year-to-date the year X.X%. of somewhat we is cash sales our year operations results performance reflected growth the impact expect outlook XXXX and earnings, negatively our with If we This in EPS favorable to exchange current hold the on of unfavorable impacted sales rates in moderately now range range X% a XX%, full to pricing foreign be $X.XX. will $X.XX expect our capital in related for is demand near Based levels, net guidance. full our

adjusted expect earnings per call range now share will $XX.XX Given now of the questions. open our momentum, diluted I be the net to in for share. And sales per we to $XX.XX up

Operator

come Securities. with Instructions] first will [Operator question Fargo Wells from Biegelsen Our Larry

Larry Biegelsen

Congrats on a nice here. quarter

press the the excited So quote M&A notice in product hard and release not being the pipeline. Kevin, it's about to you're about

in updated to So thoughts your I'd hear XXXX. M&A on love

You've half. you And deals in the the 'XX. margin for half larger smaller and the follow-up. should your one view? first And we how deals I in think second and any on talked targets there potentially about deals larger the had Is impact change to 'XX of have about

Kevin Lobo

XXX targets Most and We still large, is pipeline. them are tuck-in basis next you M&A. are be XXX another Yes. margin to a of of points variety Listen, XXX not see active we're active. continue deal to points, most this the inclusive year, us them year, our but of in points very have basis of very committed that do basis and roughly

be end, strong down the But very the sheet seen hard always work. were we're to balance year, quarters and in given going we much put balance and very -- we're exactly active have to second in the and more we half year. of as our now will paid deals you've As It's than year. a know. which active Vocera, debt we we the right that predict X of will you last the first sheet to after

Larry Biegelsen

the in order Glenn, hit margins in gross the requires a the second it big goal What OpEx? it your margin And are year, half. Is or in helpful. step-up margin this And That's to drivers? what's for visibility? pretty the

Glenn Boehnlein

Yes, good question. Larry. Really

margin always if look I historically, off. op second you the our think of at see would leverage year, just half the really, in really you performance takes that

year would honestly, between tell different in And so this this margin gross in going and kind I SG&A. is here you that you first -- think to year, I of the like from a half saw don't performances years. the seeing of balance, be past really we're good

think half sort expansion of XXX the basis year, probably the SG&A variable spend Kevin year. come half very we'll of of leverage given than this I like forward in we moving bullish on, said, our how margin the or And gross in we're out of back holding still year. see points about comp more margin in models, to just for SG&A back the

Operator

will Marcus Our JPMorgan. from the with Robbie of question come next line

Robert Marcus

guide understand them don't you quarter you I'll during in line quarter. just me. Street, did Kevin, that. you guys a ask but I upfront. public saw guide quarter-to-quarter. for I versus I you bunch and again, for don't year. the Two of know the And guidance you've the the comments raise made came just quarterly.

that line and into both is I as top also have hoping visibility on Just bottom. the the second you reconcile you well. then what confidence part can maybe guide, imagine and you're that on the to equipment So complex? seeing question, And I and in the Street the the versus of procedure you could the volume was raise capital XQ with touch

Kevin Lobo

the Thanks, from pleased actually can sure. guide last had QX of we kind for seasonality were played and with see thanks We going We flow quarter our and things a big remembering are the to year, to comp. how We Yes, that Robbie, very out. quarters. way don't big quarter-to-quarter.

look you the back If of bullish the very year, at on half we're capital.

seeing very endoscopy We're also a We have and strong backlog, big in demand. particularly medical. in

installations are to the the about, both talked hips but products, able the the we Mako continue is year. start As see both of and impact beginning X negligible off really and next We've achieve that also in tailwind in big a way XX expect quarter, back high. been strong after knees, price and positive strong had Pangea, a will you've half And we to LifePak QX, QX replacement. into tremendous and really new the in of products very those very future for That the I'd and you're quarter thought price more demand into seen in say than our we've year. joint July to lastly, are feedback going big QX, leads at that, to and year, receiving

certainly, are one also is in of a that tailwinds our QX. QX. be lot a big going up growth push And in to going and QX to So in

of that year high X.X% end growth coming at confident guide, year in our the we're fact the the and have XX.X% last I the off a So very love before. XX% of raising year we of

are and we growing So good about very line. off the big we're feeling top numbers,

Operator

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

Ryan Zimmerman

then a I quarter just comps. half dynamics Robbie's here. to Kevin, there's of on maybe some the the the there's growth product and have you question a question of on into little half appreciate on drivers in potentially easier expectations that some bit kind bit want kind the and to back year, for year orthopedic sustained seasonal and comment XXXX? little through one a Congrats the nice the health on Can pricing. of And dovetail see I the around back of then Glenn market, of rate that ability

Kevin Lobo

our not Yes. Listen, we're changing the story on market.

many same quarters telling. story have the in that that And frankly, this well we're saying on So of as outpace market to hips, our seeing as but knee and for mid-single-digit market Mako as we've that -- now they see largely been we've backs the for a that. we market. been seeing Insignia of ability kind July. a that's we're And

surgeons something of to into end from see and this see the schedules, As and market a pre-pandemic surgery and talked knees, that healthy hips potentially year year. good next we've we elevated their we through sustained for see and and

Ryan Zimmerman

from the Very helpful. just that And I it's you're question tailwind pricing, mean, then for to me Glenn. second around the nice getting see really pricing.

on potentially see you opportunity, as I about can where that? you as how can't think go I pricing pricing about XXXX? do you As this an long mean and beyond mean, you an bound push then both upper into pricing sustainably you think year

Glenn Boehnlein

comment I'll limit XXXX. my to

addressing you that would equally negative. their as innovations. I less new So on side, on they teams and frankly, positive we've about the pleased. and come up. the they've constantly pricing that great think how seen on cycle tell you tell We're the really related that of introduce our And would ortho to those product I'm accomplished, you we're gain products. in outcome First MS&T all, this side what price they I you at and I tell innovations, if if we'll just contracts you And look MS&T would

with we less the be that on our just than Ortho, honestly would carries it's our that on the at are this, in over win. to which not field you We is working level just down enterprise a I people but to negative are this tell used salespeople.

that certain -- So incentives pricing programs in related margins. the drive improvements we various divisions positive put in to or that

back of I of QX, that see is to at sales half and look in in X.X%, terms would And would what we're our you force X.X% if performance tell keeping year-to-date going. of so products I on going the And QX. the some in my year, money in anniversary contracts. you this That's our say. just

maybe point, so a bullish in price of but And are captured to isn't on I'm that do there drive to going I that a may going that of think be it. there little be Kevin's that necessarily moderation, bit to newer lot are here. -- products But there's out

really we'll XXXX. And this continue see good guide think price still comments I year. we to my performance although

Operator

Wuensch Citibank. from come Our next with will question Joanne

Joanne Wuensch

[Indiscernible] fourth It look pause go because when Very quarter. going sounds like at much. notes, to so nice 'XX was quarter I you're I'm to Mako. the Mako. record on so where my here

was 'XX record Mako. quarter First

is that the Mako Second robust? What quarter each you're quarter same. going record on placing

Kevin Lobo

that take I'll Yes. question.

all, of big first international, a So contributor Joanne. is

We are countries the really markets, of in like and the up picking pace Europe. international, in Japan, particularly even some emerging India

-- is Australia, in U.S. ago. where say, quarter, -- coming our I putting the is very they're So That that's and and knees And fifth is the years top their system. increasing. international a actually would and on And That the they preferring are rest on as seventh more penetrated and organization people done continuing well lagged. of or job in we're their look and use on that, people got clearly has in every U.S. to new, X a It's system marketplace. And and now chance at we of Mako but sixth really the tailwind. on their is just really strong. system the are a X to demand new that Obviously, percent market, the technology. a coming just are terrific Mako. on came of offerings of the the hips international winning And the and promote was robot

teams lot so still there And in of ORs out our don't are have are Makos a that there and hunting. them,

So super excited. we're

going we're for functional quiet for of alignment. have then we been Mako. of with fueled that have with and changes X.X then, add growth. software spine made the software shoulder really to And These course, the to successes sort hip, think software knee I the X.X

of has a lot of, a lot take. in the So an that juice it's still engine

Joanne Wuensch

how rolling there that. anticipate with you just Shoulder coming that, us out? to on, through and follow-up hardware upgrades? those a Spine Or -- do software and as Just walk Are

Kevin Lobo

yes, both in attachments. are Yes, cases, there

But that would robot specifically are same the software. use. well attachments can as that be as it's spine So there you for

So XXXX. when total it the did becomes both the hardware we with software launched knee application in just as knee back and

Operator

the next question. We'll Travis to go with Research. to We'll Steed go Global BofA

Travis Steed

First, to historical rate year so to XX% typically, Stryker. growth kind well your Stryker for above with, of the X% start this growth

sustainable year. a is What the kind So a and sustainable question of is I this growth kind drivers getting how growth kind to your Just above you of curious the lot over Anything years? worse at better, of growth confidence next next are Stryker this of of this of going these X normal X year? drivers forward. level getting of look sustaining kind get some rate

Kevin Lobo

Yes.

start by X year, ago, growing me to Last X.X% This we organically. XX% years organically. we XX.X% organically. year, grew we're grew Let X%

really are obviously, think I years. next over showing bigger medical and growth trauma multiple an are much we going a year. I X If in about impact year next year, to some next in high can impact in but these half, flagship So only back sustain that the launches have of more take big think we impact,

still Our is camera steam. launch gaining

Procuity it. of ahead launch has Our years still

launch Mako a been, tool in expand has going is it well opportunity. plenty of giant still internationally, as power is which States. Our has to the opportunity United as continue both as actually, to

part That's to tend for recall has back continue. after then growth Our digit organic of then formula. We our into the X And growth. assets. buy year, been we as that That's to double M&A we in get digit, last offense, And to huge our rolls international. international opportunities going few still have that fast-growing high single years.

growth. to of high So on future our the I'm organic ability bullish sustain

teams, spine cycle. not our have lot around meet Mako innovation really related. our is year, impact organic this had actually and yet, If growth a has has you tremendous nor different think all of Mako about as I they innovation. any It's hasn't And of nor divisions, Shoulder. travel CoPilots, innovation M&A cycle, product the

in there the is changed. So plenty this high expectations room And of growth for have company.

working play were years it and we soon. split clearly forces And offense. has and growing and expectations, X%, split and X%, business X% formula that's go are organically, that new sales back I a it's don't units If see slowing continue you we changed, XX anytime there and to down ago, and

Travis Steed

at Super going I'm for helpful. you I change to or know it's And if another at is that's now. about tissue that more you're kind robotics, question guys your closely lately many to a how getting market? market surgical in years thought thinking have of interest all looked

Kevin Lobo

it's as And an we complicated. like space, than Yes. that a Look, for there more it's player. big is one area room

procedures If are that but cautious you think going to that be we and not about done are about all careful choose the we're robotically, how enter. to of done, types

defending we're us, move into in would for all be case. to any business not we space. offense that This if Fortunately, this playing decide

many. like do a you of space. it. are we as There lot start-ups, looked in So that are the know, We've at

attractive the not trigger. we going there surgery procedures of if haven't need that don't very will it, get it's a are we are pulled And if small won't. into to but fraction to We space. We general done I'm or robotically. an predict still

we And so it, And explore continue or that going we third. which but going we're to can't like. first opportunity. there We're one to only the enter predict or to adjacencies. That's not second that multiple one explore I is

Operator

Our next of with from O'Brien Piper will question the Matthew Sandler. line come

Matthew O'Brien

to start Glenn. Maybe with just

the go it's in to at half. back related the Larry it's X% for think several Stryker. about down that I If aftermarket. in surfaced this As stock, years I I the And look back concern margin

the type you comps, the up off in margins easy put but comps tougher growth half of You this year, operating time of typically back this have around. in the

on SG&A? where specific see little or of So top impacting in be the in especially and do the side, the can then that how could improvements impacting margin in line 'XX? top the year you some next strength you on more do without areas line these of you And a potentially even in terms

Glenn Boehnlein

Sure.

a first -- all, of couple I things. of think

control. lot getting of drivers sort honestly, of of gross profit at margin our margin out of getting or out in I of look the mean you are, If a sort SG&A,

in our control. You look that's at hiring, completely

say, our of it, in lot that down confidence control, plan and of in website how to, completely to we so these know able meetings the budgeting good that and just we be to travel we drive a terms going that margin. how come at have look You we're

The our is, just rates fixed a lofty businesses, are in look sort grow lot we our other those sort basis at cost natural across of a growing it drives leverage that we of where of will these thing if when of off drive business.

we happening. level. at be you honestly time a time at out, won't what's in has comparable So And been spending look if that QX and

also a what that with We look inflation are at terms chain things charges lot of exciting have we're of of there those and X going the changes on. working of took And working that years. over sort we in that making if supply doing you down in vendors, last we're some

also at look low-cost We manufacturing.

and have in in cost we're which where lastly, those. continue now to Poland of product of of also back we primarily. push our of Mexico sourcing X/X into then into operating the facilities sort in of and expenses, and areas, in transactional we more centers, And sort see We U.S. of these what shared that service work are sort Europe developed day-to-day more

have a confident that loudly that And to plan we XXX talked did good to is there. if have about wouldn't that think us deliver honestly, So pathway I it so we very basis we get have weren't going points. a we

Matthew O'Brien

is pretty doing on just appreciate And -- exceptions, well. well. a mean I it. neurovascular portfolio, then modest across the that. With couple everything doing is I Got of the

talk hiccup lower you Kevin, there -- hear extremities. little about really don't think a I And didn't I in quarter. was the I

of on So can I help you've too there side to new those successful thinking to start those down show need about? there that you but got to to coming you on go do markets, the that pike are there? should things early, tons be these things like runway maybe big there. in or cards coming organic pike don't products know categories the Are there your the [Indiscernible], more inorganic we

Jason Beach

But your business Jason. comment maybe and is Matt, and foot to you, tell start turn I'll make Neurovascular, with it point then a for with on over Neurovascular, were the ankle. to globally, Kevin I'll this we on quick pleased overall. I'll

say, business made supply Glenn comment off to U.S. in I'll prepared the bit nice start. hiccup, to remarks relates a a of a actually around I really little is a the think it in as July

So that. we better about feel much

[ know think the I you be quite to ashemic also U.S. business, continues in ] competitive. that specifically the

but market. force We are sales the making and still feel customers, adjustments better to overall, address about that in good our the serve

Kevin Lobo

you the since you And this you of we grower ankle, tell digits. for recall, & Yes. really I would low talk acquisition, & kind about good the Ankle been digits, growing foot right high a and as medical if Ankle has single softer. did has Foot double us, Foot year, market been

saw in second past. in but us that just the That seen with companies. with & we're Foot the in quarter, not You Ankle seeing quarter first have being where continued stand-alone we the the market softer the than

was really it's a freight continues And Foot need Ankle, which trauma of of put driven in now software end trauma, core footprint, have and to extremities, any not be we is of But a total big second product procedures that preplanning replacement, a kind & by fabulous we of inorganic organic, upper and year quarter. for train up into the number had for the that's growth. that this number at So launched pipeline, ankle and we products including great year. which products, which last we X-foot

long market. the The or patients had a & where X a about back. has been the in where happened bit it's in quarter haven't They'll time the come a Foot in This slows business the you've we've And really Ankle. down. market past The market has more gone anywhere. So quiet. gone

we little an We'll on closely. give that. we're area semi-elective, terrific watch and a so bit Ankle slowdown business a the of But overall you the for market Trauma is business have in kind -- more the going is now overall, of next our but & business it company. so growth Extremities in And the a for still quarter is the slight quarters, Foot X And terrific. to update this

Operator

line come will question next with RBC. the Singh of Our Shagun from

Shagun Singh Chadha

have? market with you U.S. currently? better our a to have importantly, impact was trying a to OR market have then it just have place in drive what in wondering, you more I'm do And are I you the follow-up. Kevin, new to seeing integration in expect understand guess I What hearing what or products just the integration So capabilities. longer I efforts term? And robotic you platform your

Kevin Lobo

impact you entrants much business. having -- we our at it whether seeing, we're at Listen, new an really Yes. we're it's not it's our look the if whether our new integration, of robots, portfolio, all that seeing in

we're technology that if seeing. of concern great that we're needs future not you like we're about There us the for our customers post want. can for profile. growth, growth what the meeting guidance believe isn't what see continue at major out to technologies. providing and maintain we're organic really chances. that's of We we the right least our anything the concerned see and our with have we right to and there, type strong We is cause our really now, on high-growth We path what for a And

Shagun Singh Chadha

said which as wanted previously to on I thoughts to that called out including get is you interest the your neuromodulation one an and adjacency. And of is apnea you it. Got sleep you, just adjacencies of

E&P something your share that call that for just is you could sense And to the thoughts given you have So in-house makes point. there?

Kevin Lobo

This a are we lot brain There of peripheral fascinating, stim, cord obviously neuromodulation. and stim deep it's need No. the don't nerve sleep whether to We relates think kind that to spinal to need I do question, be this related space? electrical apnea. is which of tissue be are treatments in stim, soft Yes. back in to right,

I neuromodulation there. going future. is But one will from predict in we'll to we'll really do So -- and be space. can't of Stryker first, be the a those space to how I which we investors buy the grow to to deliver enter do I believe for where that's value believe that's make day spend it But us. acquisitions. the we strong we're if with company we appealing going in again, market. win have can money and sure can that our that a part

-- we're continues we stay And going but to like tuned. careful always space thoughtful are. interest be of that And to we're so and a and be is that --

Operator

Matt Our come will Barclays. next question Miksic with from

Matthew Miksic

said, in year sort have First, into was think digits, your markets mid-single-digit into else to is number first And posture maybe able saying maybe what congrats, as as year? quarter, early growth I talk about you confidence going orthopedics. half when the some mid-single play thinking. or the wasn't look one sustainability maybe I have bullish I of it's as obviously, seeing you next the sometime backlog as and that strong comps loved out, of it as first gives simple that you you folks the like be or last end perception mean sustain something are at and year's like to on And follow-up. whether of you this the start came the I

Kevin Lobo

kind internal at and Yes. It's to market, That talking indicator the models surgeons, And us. years, built they're seeing of really for our that. right, can our sort looking over far their very that of insight good surgery in out. schedules project booked is how we've a the

go you've past see the position. right market good as have we not out strong. hard to demand months, But a the a it robust our pretty visibility. now, murkier. then X, X healthy. And And and we as for love would gets Mako then seen, we little X, like be And it's course, X, this of Now

really didn't July I think I strong all you about And off of is excited these have very doing If mentioned start. a surgeons procedures. to that earlier, are

schedules one we surgery about that bullish then actually month, volume gather And the and feeling we're but so and on, talk strong market. data looking it's month to and the survey obviously of only at surgeons

Matthew Miksic

a And thinking fact the traction And helpful. sounds you're launch to to guess, starting like you're that starting comments super in the Mako and it taking years your same point -- on great Mako U.S. I intermediate Mako. get internationally, on That's on the of way

might areas be there talk some because you other sustainable you a about pull-through drivers core trade notable and that If a was of on other of international can the sort your it markets Any there with see side? is could internationally of effect?

Kevin Lobo

there the [ What Mako international. there other is ], tips XXXX. seeing, spear Yes. and One we're the on of Great Matt, X question is are the international. cameras in is our

does because off. starting little And a bit a that And and move, take it's seeing but Stryker towers business. Mako whenever pull-through to And Mako, multiple lower are market of took sell sell longer and we little cameras our So really in we actually we're other create internationally. when to shares countries. a it now

and platforms. that is more entire placed get actually more more than that Stryker we've the as Mako's accounts we business as they were of As those Makos, we sell we X But are coming sell cameras from those competitive lifts the And it really United in the important States. portfolio. discovered

leadership a spear. the them, getting on between know, of into a laser-focused of, get company. also that bonus us our division better we've businesses to really we're It But really job. made so U.S. series of international call the financials as great done leaders. good a been small more our those a took plans That's the really and a as And X tip us while, global have connection much and international, I'll divisions steps, you

a world. U.S. be shares at many same years market and we've X, that has the think, I half international other that little to accelerate just many And growth. the continue U.S. international international of the but first I half a U.S. the full the been enjoy once above where year, kind of the expect second at time know in around we bit in the growth years so make or we behind, gain And should above of countries in another as the we XX the to year is year lost the for again. will in row X had, for or up now for

Operator

from will Lichtman question Steve next Oppenheimer. come Our with

Steven Lichtman

quarter so about Kevin, the ask during some I far. to wanted you China, commentary

a a about you you from You from environment just positive. sort of mentioned perspective? it macro as environment guys sit talk Can the operating where overall perspective an and

Jason Beach

take tell you less for growth Yes. in swing Kevin in than in Jason. we maybe can about good you us I Steve, and China anticipated. the originally want But at jump impact VBP quarter, anything this you, from say as think a if would it's additional. I'll China. I would

standpoint, that from I and a to So growth for is environment stabilize starting us. to turning think VBP

Kevin Lobo

sort more a pretty just mind when you be overall that And negative, is now an it's of they given sustained couple not been volatile, to I Stryker's important a large saw of Yes. keep And the population. in a from small, get worst last we'll over. little with And us. so as challenge see is and business. think portion it's both China. it's more And can base like that the years. positive into bit a profile small the a last We're market But for it's growth away just reminder, just rates, very hopefully, of positive quarter. move the Look, going a we small

Steven Lichtman

cash just then it. And on follow-up Appreciate free a flow.

So it's year versus half here first bit this a of trailed last.

working some you of on outlook that full could mentioned year cash free working parts that on or Any provide moving capital about? You talked you sort capital flow movement. thoughts improvements

Glenn Boehnlein

Sure.

year. performance about this I we target given our We of that flow all, XX% conversion. cash any free XX% think that differently out First year-to-date don't still of have there to think

we of working first seeing having bit I year-over-year half some through. are to do of more up back of so seeing last from M&A, integration with those think kind little in differences a we're -- what some capital year picked you're the this year, flow

tax the payments are, would into seeing of have timing just the half changes naturally also The related what normally that happens. expect. higher say, of first lastly, thing then larger same some payments we we this than that to We year with accounts inventory transition are sales receivable. that fell And

that also the flow impacted year. our so And this cash first of in half

like on we seasonally half in And with QX QX, QX. much a a of normally has of flow lot in just lot we'll earnings of of For free the back year, pickup see I do conversion into the is what cash flow that honestly, QX. to our see this feel in and higher then

really our work brings line. that It keep we'll to also inventory, down So cash flow in impacts then it performance. and AR

and away we from that. So still XX% target cash XX% we'll free and flow, between backed haven't

Operator

Vijay next Evercore Our will question come SI. Kumar with from

Vijay Kumar

LP Kevin, Maybe on maybe launch. talk about one the XX.

XQ? right now? mentioned had it constraints I capacity at did a the past, Are think mode in full launch some you in we contribute

Kevin Lobo

orders. started already taking we've Well,

we you to it pretty put ability me fast. way. And have that ramp Let to the production

not an a about launch. is Like think of implant So have like if you set implants. to you make this Pangea,

an make this have of instruments to You operation. assembly sets is

So we'll scale able this quickly. to pretty be

budgets, obviously our than kind implant be faster demand any XX will putting look lunch. the be and of getting it then this at is being having constraint as ordering to so I see And out meet an the capacity there, for wouldn't would only LP constrained. with their we customers in gates ability out The it, of it

So major a I as don't think about concern. capacity

Vijay Kumar

on in versus maybe organic overall the The guidance seemed dollar And Street, revenues, one raised. but it Understood. line guidance is here. was

were think you about It July strong. Just some being talk in about one-off -- I impacting XQ. looks there items mentioned like

the guide visibility about in ratio talk So and the that the confidence half?

Kevin Lobo

good raised again without QX, QX. after saw having we Listen, don't And we you we raise after pretty guidance raised confidence. Yes.

backlog significant We a to of good have our which visibility we're ship. very we capital, have very going and into capital, know we

a again, that's And into gives the pretty procedures, feel procedure. how of about it. other then good confidence. lot the of and have the we And us So that you part visibility

beyond if we've Predicting at be months. least good at don't predicting X to being a feel that And be -- But harder. we around of very tended pretty a the for guidance. be little we're that's that that or will again. raised So year this we confident scare X being in number above deliver XX%, X afraid months, hovering number. That going months, third to row

And the think enumerated in so those those headwinds, really earlier tailwinds help and are call, I us. I we have of a to going lot

Operator

from come with will Jefferies. question Taylor Matt next Our

Matthew Taylor

to follow wanted I guess I on.

before it think next year. about asking the Travis' growth drivers question I some was of

Any launches shape would those long roll contribute the us called set? You view and big I you growth incremental about that guess, and about drivers think the XXXX? And contributions the guideposts you could and or they being in defib how as thinking those as how beyond. Could out us of Pangea you in help give in 'XX drivers. opportunity the in

Kevin Lobo

contributors rapid. to more would XX Listen, future be they're LP will I growth. both say very significant

year, a this after. a the year, half second a a of these see pickup in year long time. year you'll next products big big last the So year, But

buying are years. X X, defibs And will for them so some who these hold people

sort a -- Pangea X X pretty growth XX. be of years, of will it So a X years see it'll LifePak in different. first out have the of little is tailwind, long sort but to spiky you'll meaningful

it these the implant the So next it more, last a little -- will half of all trauma launched quarters more be but build of and sets business will implant sets to It and well -- won't as second consistent a to to able until and a mailing with as multiple instrument long, tailwind takes long, launches moderate say, our fully the will be be year. long It makes fabulous it and comprehensive us core but let's bit a systems sustained providing so time. be plating.

Shoulder still light force Mako I still coming. the coming, getting able to cancer. You we we're new still Extremities So coming, have and spine Trauma up at mean, those and that -- yes, will Mako But business products, in the super absolute stop the with is CoPilot new excited. floor an -- to leader be doesn't doesn't the indications -- be right? it X XXXX also

for that have get for up as cancer. bladder we're new opens new and but going well. and opportunities as that markets That ovarian well long, to We as

These now. internationally. haven't And benefit. don't these X-year this been yet a launched products sort new provide multiyear. products right in So product of we're many small that cadence just of are They

maybe even we've going years as So products haven't now, of some to these U.S. tailwind launched, that's or about be in international we're X because and provide EU come. to a going year launched products These for So the in to markets, Europe many they talking new right? been that from MDR.

see the a lot hitting the a innovation excited be raise, mark. about feedback. product terms right? you for the of the you and we're another there's in to That's So customer reason new cycle, product, So launch

XX winner, are these can a already you a and to going orders with then multiyear winners are forward coming going is be Pangea already have you And in and they're realize winner winners. to winner. that that a we and You the know lean LifePak is be and

Matthew Taylor

the talked guess you margins. make was the just on look in follow-up second be a wondering ask would year, We the basing and comments there's could second happen. I making it's progression I just be I high-level half Do you're the of think it different would where on this Glenn similar, to in this expansion more going or some margin a first the in shape Could year? lot XXXX. how of the if the the than margin because contributions half, you the progress about

Jason Beach

Matt, it's in Jason. here. jump I'll

we'll talk when how obviously, we can in expect But you XXXX, the more of terms about XXX we'll basis deliver on points get that think we margin shape give op that As of will about to January. in expansion you us Certainly, next to more information year. look, January.

Operator

with Our next line question the Jennings will of Cowen. Josh TD come from

Joshua Jennings

looking this revenue United channel and growth commentary, ambulatory for quarter. center surgical in the on States. organic Kevin just on just some team We're being Congratulations

understanding that terms over can bottleneck for migration Our it pace And total the the of is total then interest into setting. migration the just the in in the infrastructure share build-out? Or years change X-part -- was impacted joints the of couple of in terms this the rates? And Anything next just the peso you that of any half ortho in lastly joints? in question. or for ASCs number first infrastructure, outlook the -- by sorry for

hold that less improvement channel. pressure the company more well? for for more in ASC Or pricing or commentary less as there pressure the pricing was improvement or the that ASC or pricing business Just pricing should we pricing

Kevin Lobo

of pricing parts But hospital, by versus answer. this saying all my there difference. the that start get let me ASC any seeing we're I isn't question that in hope I Okay. really

very Our is across where consistent we channels different the pricing sell.

So that's part. first the

rates and we've the going you're call would it, and interest it's second finding soon. high, a trend to The is, ASC to continued, growth. being Even built part I anytime ways get constructed. continues that And I'd slow are down positive ASCs their be see, hospitals seen to steady say, going to not with

the the hips end percentage, we'll to it percent finished year, in of We're the not give quarter Perhaps knees the highest number. but to done, second going at The of and centers. exact you give exact the with climb. ambulatory continues surgery

to and if the Knees ASC we It ASCs, quarter. -- in done in happened Hips is Stryker's of happened in our our and quarter. the percent up first it quarter every the to move look overall Our at again growth growth. continues in ASC And second that accretive

operating of So offering favors given This the growing us, orthopedic ASCs. -- ASCs. our rate in at we in our we trend, believe, are a breadth high

this far, And so shift good. so welcome and we so

Joshua Jennings

do follow-up. update industry same for in know market, of you're health you've the a hoping got categories outlook Spine. you kind Mako ortho there, then multiple just just CoPilot outlook segments given a for approval And Great. is today, the was of of Stryker's or launching could U.S. the and and guidance your I you've and spine

I first adds. think Stryker share U.S. market? enabling these with half of is gaining the Spine currently in XXXX maintaining and Is kind share gain the technology of can Stryker Spine share in

Jason Beach

this spine Josh, we take in would Interventional led I say one. as I you say, specifically by second quarter the quarter, Spine. I'll would is this Jason. have about solid a just think had

CoPilot certainly and will spine us Spine that to we As the market. help the talked we've in future, and about how think Mako

there to additional add And we of in future. nothing how so the think really terms about

Operator

with Antalffy line question the next Danielle of Our will come from UBS.

Danielle Antalffy

really a on quarter. Congrats good

and perspective you're your seeing I implant. question the you're the difference this a advantages on the ASC I of breadth is hip there's any -- both Stryker just the share product in the of how if ASC of the outside the because just from ASC. of robot And think in asked dynamic. Kevin, about question one follow-up a knee and Just curious market the seeing versus offering for

sanity that just with check you. want I to So

Kevin Lobo

well. Yes. Danielle, if what construction, or I'd new that extremely say is we do renovation is big a there

And and construction, So one that's wins -- engines surgeons or competitive already there they're rates. that to little big the a And we're But of caused at on a the of ASCs, all why to using in the in I that and growth if are ASC an orthopedic to if this area we doing and entrenched area going future. the where that the fantastic harder ASC, want for they're been the offense is us an laser-focused behalf us products, high If believe that's where are don't to for a that's it's have right? win to speak that's today. ASC, to continue doing be that's we new that's displace. tremendous that's very area going we very, we're winning continue renovation,

definitely, all all necessarily there's that not And new it's going ASC, definitely, So segment. time. there's on construction the on

Danielle Antalffy

Yes. Got on just it. Understood. follow-up that. And then a

been over settles As mean, and happening ASC being you I the procedures out the think about extremities few years. done knees the we to and X has the versus this hospital you're if say, do talking forward in, fast where of in percentage hips, years now, shift last at

Kevin Lobo

Patients of There a their I Look, There's a have higher. crystal of happy. piece Yes. don't have terms sick It's love undeniable they no about Surgeons parking. It's close -- just Everybody they in trend. an They interest. going home. it. love because this ownership it get to have is go action worry to people. are their don't ball. -- the is a to

health care it's So good just system. for the

it to What's I a But X just differently tell And upper about It would this increase. I it's don't at than I feel would know. thought going than is I grow. growing continue did rate so to ago. I faster the years limit? thought. you, I

replacements done lumbar. sure. I I shoulder We lumbar I'd even done in in which I obviously, didn't thought are total see -- cervical spine, ASCs, ASCs, seeing even ankles think think didn't

more to to rate-limiting of So of think I ownership but the and and I structure it being the exceeded sorted don't just the it's The those the revisions to now, to just will sort It's what continue. It you're expectations it's from really going continuing see keep then acuity see think not and our done. XX, have XX% this you're XX% financing grow, X and could to out to factor, frankly that's going hospital going the types Obviously, going between next factor just I internally, these the rate-limiting XX% now. to scoliosis, more cross I high go procedures and in have range being see stops. Pipe, years this where procedures. XX. very able and see is and year, growing. obviously, construct that's ASCs in just It the and capital surgeons, the could. to But

Operator

Our with Needham. next question comes from Mike Matson

Michael Matson

Yes.

compare about to to business. international outpace gross that So about to -- from what your in U.S. that kind margin the of and a the does see margins? to hear to business good the perspective? momentum the continue Is this that mean headwind it operating wanted I the would something How ask your could margins be

Glenn Boehnlein

Mike, we as have look international, at look of mind, we their sort of keep international margins. as things performance R&D at numbers don't couple sort of of a we expense in our in

performance. So you that have

I more we developed -- I markets, market good operating margins. also vary by performance We can in of think price mean see it some and market. good these

how to of realizing see would out emerging sort we that relative contribute of in standpoint sort that fact of more headwind we cognizant those of the overall international will pricing I profile. our what the think a long slight what in are a though, to margin look we're and obviously Sometimes sales, you markets. as over term, that markets, will from tell I we

of consistent XXX make margin plus and basis that the to past saving once points we're basis do drive other we so and get of kind kind at. have that needs And drive points for to that we increase sure margin infrastructure looking the we XX this need planned performance needs we this

at we're going to will we look there that overcome. -- as overall, -- we that a that So not be be it, but not headwind will seeing I it's think

Michael Matson

the Okay. brings to in of Heartland just fits you area. did on Company, I is and Got the acquisition, believe, you Can it comment then one how it. think that do And what the table? or Extremities kind it just I small

Kevin Lobo

sports well doctors this us the going business this elegant Ankle both Ankle It's tissue as about really teams that used business based procedures for is be call product. sports & point & Listen, We're and an as excited have. Yes. to it, units, they fixation, product in & Foot that's Foot terrific filler soft gap medicine surgeon on in doctors. by are our a of both Foot selling unit Ankle

high you them. time. get And company really not as growing tracking a It great So many & been terrific for business. business the again, been sports a And We've we're for in big gap Ankle in rates that much. product, our but has, some going details really, know, product. this not really quite years also our to of at now. it's into It's filler fits Foot very fits with with how

Operator

Catlin from with Cronin comes question next Our Canaccord.

Caitlin Cronin

Stryker? you, question quarter you're capitalizing you Can Just as that off a you're business The well. about earlier. up quarter you there? had seeing or Is of think and what jumping talk last specific to makes this and why of business Interventional strength good this fine quarter market more for Spine the that on, salon a

Kevin Lobo

terrific business really ours business. has of this IVS Yes. Listen, a been no --

in acquired curve these OptiBlate while a product. launched is some If products. also the We've we back, terrific that product. We developed you bought business, CareFusion the think what SpineJack about internal we from the balloons

we to have because continue X we some going just in and we growth so has portfolio within at salespeople been partially we're future. docs, we and to believe partially it's be have -- have really the a certainly expand have and going area as portfolio point inorganic. a business and to product We're been area the different us, organic adding we this call the like, in doing an we So our engine robust pain for points commercial oncology the and execution, IVS and pretty terrific outstanding of

Caitlin Cronin

[ like child a the market launch with this you shoulder in to seeing application updates in robotic expectations the of later launch What you're maintained robotics? early you of And use and Great. any are Zimmer's shoulder ] case seeing year.

Kevin Lobo

Yes. competitively. yet feedback No

had So early. impact any really thus not it's far, it's

Mako our anything chances. there know. chances we once share really we'll But now. let our learn isn't shoulder. So you We We'll with to we our like like right -- something,

Operator

Our of next Raymond with James. question comes line from Jayson Bedford the

Jayson Bedford

quick. be I'll

be I just chain, whether of issue I flow diverters. maybe wondering, supply supply Just on thought And you I'm a costs, heard this within view just when the us cetera. mention the it you on et a input give will as resolve? health can costs, broader freight

Jason Beach

the would shape. Jason. United issues States second just these relates half say think it's Jayson, to would is relates mentioned, neurovascular relative well. in as business to expect our I supply resolving Stryker, the bit robust for as quite We we But saw outside say as as growth I a are good see Do it good well. of medical spotty a themselves a start. July overall in little disruption should to off supply to I like medical, I of it neurovascular, things you And yes.

as concern is we nothing So supply us standpoint move from forward. a a for

Jayson Bedford

out helpful. to wanted wondering That's drives the think rebound the up just you on what is historically, And these follow Foot of lull? commentary. just just Okay. & I the market why Ankle I'm And soft.

Kevin Lobo

different dynamics Look, time. the prioritized It's of other of a is lot OR for And one Yes. getting procedures. dynamics. there's

part. one because are you actually used them, squeezed That's that higher the out for value, surgeons have more being let's revenue-producing ORs procedures. higher So are operating of call getting

to pay You've a delay. of got a co-pays squeezed that bit bit they're sometimes people a cause little that and can these just and have

surprise, past. us seen there don't of So long kind say, last. like happen It I a I bit know this caught And it multiple in are little the how we've factors will at honest. play. going these we've themselves. We heal But these they're the we to business don't patients like -- be [Indiscernible] have. that -- by liked to that And portfolio we have. the aren't

a But this going to when you market, it quarters to We'll happens. But goes. be Extremities So again, going not X positioned we'll for in know a and be let back happens the think what in growth come they're business, well how to and it's QX we're have problem I Trauma our continue regardless market. very has high going row. that of yes, to to been

Operator

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

Andrew Ranieri

the Maybe And a Moly, just about think can one you it Kevin. small, that imagine acquisition mentioned but kind with I more this be did about kind XXXX in of might some curious for also in kind of of to of the you just done curious be you've maybe bit other But would but fairly another you to detail informs small that space. deal. if I the strategy How hear how market. prior breast this overall you able deals bundle of your breast and

Kevin Lobo

to Yes. the us. about excited you interest able And to be has division in mentioned, for an the NOVADAQ exoScope. area that [Indiscernible] the have And is as health and urology surgery. need localize Women's lesions for been removed we pretty surgery, be with of Endoscopy the

because is PhotonBlade. -- the have They're acquisition, big They're elegant, then -- there. now, the is it use. in It is we producer, tissue least have is from classic Stryker. we for the can a having reps can The single-stage We it We have and the product, of are you localization, product. Invuity not easy it's and the this a though a perfect do procedures this already procedure. revenue tuck-in the And rep at the even so the assess health already there. to terrific

are so care. this we've the all had breast Stryker. it of to we is that other eye part as we've in excited watched enable will be -- and on, a one really And in to have bigger our force And us space. This the products

Operator

Our final Goldman David Roman question Sachs. line of the comes from with

Unknown Analyst

media comment to made the in or constraints in or are to Kevin, intermediate-term you and I third pointing MedSurg prioritization that whether as wanted hospital about even we a your and cases capacity capacity suites. long call managing about just business? potential tailwind term the How it's hospitals certainly, dynamics should their think a out around about the surgical acuity

Kevin Lobo

high. good is ASCs being Patients Yes. the being are are construction, And a demand as is There getting outcomes. are constructed. capital great question. certainly, very It's for know, you hospitals constructed.

quickly. playing of their ASC they spreading. They People go can contributor. think they back sport so can't is a to word get the home the believe -- I day. is same choice

be think for and one increasing. those more seeing up, is I you're operating able do the looking so this the demand And to to And as where outlets procedures. go reasons of more they're

look and of a that's we're at And high look a high I I growth. gets of the So procedures. promising this believe lot mean forward. why our be mean our has capital of probably to that, business, you experiencing growth. do kind for MedSurg going outlook sort small and that -- you elevated I replaced, at very, that's contributing instruments, to very power tools.

hope for this think obviously, least through And about we at we'll next year. guidance end the in continues. I you it know So We this continuing let January. of year see what

Unknown Analyst

you on would Got it. -- OpEx. versus basis the sorry, follow-up And operating margin last a Glenn out the margin laid where from more then I on margin just Jason, call, go-forward of the a for from a path the expansion come think maybe had P&L, that and just gross maybe, would gross on come

we pointing leverage. we drivers how the line MedSurg I the the total half you're How year, and a just the between of more about SG&A percentage in think reflecting larger of about of expansion. back with context different for interplay P&L think becoming ends to of the the think operating margin different should

Glenn Boehnlein

op Yes. expenses. that think And what did you always I in that leverage and expansion more XXXX said had SG&A gross about David, as margin would characterized to have to think XXXX, lean we've it, we of margin. sort more if think in I we op how back of

how we our of going the think So I play expansion. don't think changed we've really year of about sort is how out margin to sort for

we're are we term, that and the you that gross those near that SG&A, think have, So are do bullish will lot that's on but of we margin, confidence budgeted I things XXXX. in that year allow will to a get us actually more expansion benefit are we lot to going opportunities in a lot basis for us -- On I give planned do we say a think that XXX things this us points of for margin to that to

Operator

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

Kevin Lobo

call. in look your and October. joining all our results with Thank you. for questions for our you QX sharing you Thank to We forward

Operator

Call. Earnings concludes This XXXX quarter the second Stryker

now You may disconnect.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.