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Stryker reported 3Q20 orthopedic revenue of USD $1,944.5 million, +4.2% vs. 3Q19. The progressive return of elective procedures and demand for Mako drove the company’s V-shaped recovery from the second quarter pandemic low point. While recovery momentum attenuated throughout the quarter, 3Q20 marked a return to growth for struggling Stryker product lines like spine and sports medicine. The company reported strong sales in the U.S., Australia, Germany, Canada and China as those markets returned to pre-COVID levels.
Mako passed the 1,000-install milestone during the quarter, and Stryker is extremely bullish on the robot’s order book. Leadership expects 4Q20 to be a record-setting quarter for the system. Sales of Mako accelerated in both the U.S. and international markets, with Brazil recently approving full use of the technology for knees and hips. Only hips are approved for Mako in China, but Stryker expects knee approval to follow in the first half of next year.
Stryker made significant inroads in ASCs during the quarter, driven by Mako and its multi-line portfolio. While outpatient centers tend to be capital constrained, Stryker’s Flex Financial team and the breadth of its portfolio are competitive advantages.
Company leadership described its approach to M&A during 2Q20 as “pencils down,” but returned to more active discussions in the third quarter. Stryker does not expect to do any large deals over the next year due to the impending Wright Medical integration and debt levels, but will continue to seek attractive tuck-in acquisitions.
“We’re pleased with the performance of spine. I think that K2M was a tough integration. We knew it would be tough. It was tough. That is largely behind us. We actually got a little reprieve in the second quarter, honestly, to get our inventory and position more stabilized.” – Kevin Lobo, Stryker Chairman and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $970.1 | $946.9 | $23.1 | 2.4% |
| Knees | $524.0 | $510.4 | $13.5 | 2.7% |
| Hips | $401.4 | $395.0 | $6.4 | 1.6% |
| Extremities | $44.7 | $41.5 | $3.2 | 7.7% |
| Spine | $288.1 | $270.0 | $18.1 | 6.7% |
| Trauma | $386.3 | $368.6 | $17.7 | 4.8% |
| Sports Medicine | $158.1 | $145.8 | $12.3 | 8.5% |
| Orthobiologics | $65.0 | $60.9 | $4.2 | 6.8% |
| Other (CMF) | $76.9 | $74.0 | $2.9 | 3.9% |
| Total | $1,944.5 | $1,866.2 | $78.4 | 4.2% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,501.6 | $2,881.4 | ($379.8) | (13.2%) |
| Knees | $1,343.5 | $1,555.1 | ($211.5) | (13.6%) |
| Hips | $1,045.3 | $1,201.4 | ($156.1) | (13%) |
| Extremities | $112.7 | $125.0 | ($12.2) | (9.8%) |
| Spine | $706.0 | $805.7 | ($99.7) | (12.4%) |
| Trauma | $1,042.4 | $1,085.4 | ($43.0) | (4%) |
| Sports Medicine | $389.1 | $436.6 | ($47.5) | (10.9%) |
| Orthobiologics | $168.5 | $181.0 | ($12.5) | (6.9%) |
| Other (CMF) | $207.5 | $221.6 | ($14.1) | (6.4%) |
| Total | $5,015.1 | $5,611.7 | ($596.5) | (10.6%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,382.6 | $1,289.5 | $93.1 | 7.2% |
| OUS | $562.0 | $576.6 | ($14.7) | (2.5%) |
| EMEA | $260.6 | $272.5 | ($11.9) | (4.4%) |
| Asia Pacific | $252.8 | $253.8 | ($1.0) | (0.4%) |
| Rest of World | $48.6 | $50.4 | ($1.8) | (3.5%) |
| Total | $1,944.5 | $1,866.2 | $78.4 | 4.2% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $3,522.8 | $3,849.7 | ($327.0) | (8.5%) |
| OUS | $1,492.4 | $1,761.9 | ($269.6) | (15.3%) |
| EMEA | $701.5 | $824.8 | ($123.4) | (15%) |
| Asia Pacific | $664.2 | $774.3 | ($110.0) | (14.2%) |
| Rest of World | $126.7 | $162.8 | ($36.1) | (22.2%) |
| Total | $5,015.1 | $5,611.7 | ($596.5) | (10.6%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $3,737.0 | |
| Cost of Sales | $1,276.0 | 34.1% |
| Selling and Admin | $1,244.0 | 33.3% |
| R & D | $242.0 | 6.5% |
| Other | $354.0 | 9.5% |
| Net Earnings | $621.0 | 16.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Stryker reported 3Q20 orthopedic revenue of USD $1,944.5 million, +4.2% vs. 3Q19. The progressive return of elective procedures and demand for Mako drove the company’s V-shaped recovery from the second quarter pandemic low point. While recovery momentum attenuated throughout the quarter, 3Q20 marked a return to growth for struggling Stryker...
Stryker reported 3Q20 orthopedic revenue of USD $1,944.5 million, +4.2% vs. 3Q19. The progressive return of elective procedures and demand for Mako drove the company’s V-shaped recovery from the second quarter pandemic low point. While recovery momentum attenuated throughout the quarter, 3Q20 marked a return to growth for struggling Stryker product lines like spine and sports medicine. The company reported strong sales in the U.S., Australia, Germany, Canada and China as those markets returned to pre-COVID levels.
Mako passed the 1,000-install milestone during the quarter, and Stryker is extremely bullish on the robot’s order book. Leadership expects 4Q20 to be a record-setting quarter for the system. Sales of Mako accelerated in both the U.S. and international markets, with Brazil recently approving full use of the technology for knees and hips. Only hips are approved for Mako in China, but Stryker expects knee approval to follow in the first half of next year.
Stryker made significant inroads in ASCs during the quarter, driven by Mako and its multi-line portfolio. While outpatient centers tend to be capital constrained, Stryker’s Flex Financial team and the breadth of its portfolio are competitive advantages.
Company leadership described its approach to M&A during 2Q20 as “pencils down,” but returned to more active discussions in the third quarter. Stryker does not expect to do any large deals over the next year due to the impending Wright Medical integration and debt levels, but will continue to seek attractive tuck-in acquisitions.
“We’re pleased with the performance of spine. I think that K2M was a tough integration. We knew it would be tough. It was tough. That is largely behind us. We actually got a little reprieve in the second quarter, honestly, to get our inventory and position more stabilized.” – Kevin Lobo, Stryker Chairman and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $970.1 | $946.9 | $23.1 | 2.4% |
| Knees | $524.0 | $510.4 | $13.5 | 2.7% |
| Hips | $401.4 | $395.0 | $6.4 | 1.6% |
| Extremities | $44.7 | $41.5 | $3.2 | 7.7% |
| Spine | $288.1 | $270.0 | $18.1 | 6.7% |
| Trauma | $386.3 | $368.6 | $17.7 | 4.8% |
| Sports Medicine | $158.1 | $145.8 | $12.3 | 8.5% |
| Orthobiologics | $65.0 | $60.9 | $4.2 | 6.8% |
| Other (CMF) | $76.9 | $74.0 | $2.9 | 3.9% |
| Total | $1,944.5 | $1,866.2 | $78.4 | 4.2% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,501.6 | $2,881.4 | ($379.8) | (13.2%) |
| Knees | $1,343.5 | $1,555.1 | ($211.5) | (13.6%) |
| Hips | $1,045.3 | $1,201.4 | ($156.1) | (13%) |
| Extremities | $112.7 | $125.0 | ($12.2) | (9.8%) |
| Spine | $706.0 | $805.7 | ($99.7) | (12.4%) |
| Trauma | $1,042.4 | $1,085.4 | ($43.0) | (4%) |
| Sports Medicine | $389.1 | $436.6 | ($47.5) | (10.9%) |
| Orthobiologics | $168.5 | $181.0 | ($12.5) | (6.9%) |
| Other (CMF) | $207.5 | $221.6 | ($14.1) | (6.4%) |
| Total | $5,015.1 | $5,611.7 | ($596.5) | (10.6%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,382.6 | $1,289.5 | $93.1 | 7.2% |
| OUS | $562.0 | $576.6 | ($14.7) | (2.5%) |
| EMEA | $260.6 | $272.5 | ($11.9) | (4.4%) |
| Asia Pacific | $252.8 | $253.8 | ($1.0) | (0.4%) |
| Rest of World | $48.6 | $50.4 | ($1.8) | (3.5%) |
| Total | $1,944.5 | $1,866.2 | $78.4 | 4.2% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $3,522.8 | $3,849.7 | ($327.0) | (8.5%) |
| OUS | $1,492.4 | $1,761.9 | ($269.6) | (15.3%) |
| EMEA | $701.5 | $824.8 | ($123.4) | (15%) |
| Asia Pacific | $664.2 | $774.3 | ($110.0) | (14.2%) |
| Rest of World | $126.7 | $162.8 | ($36.1) | (22.2%) |
| Total | $5,015.1 | $5,611.7 | ($596.5) | (10.6%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $3,737.0 | |
| Cost of Sales | $1,276.0 | 34.1% |
| Selling and Admin | $1,244.0 | 33.3% |
| R & D | $242.0 | 6.5% |
| Other | $354.0 | 9.5% |
| Net Earnings | $621.0 | 16.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
