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Stryker reported 3Q22 orthopedic sales of $2.26 billion, +4.8% compared to the third quarter of 2021. The company expects inflationary pressures and supply chain challenges to persist into next year. However, recovering procedure volumes and a strong demand signal give Stryker confidence that it can continue its run of strong revenue growth.
A rebound in worldwide procedure volumes boosted the company’s knee and hip sales, in particular. Hospital staffing shortages make a rapid backlog depletion unlikely, but could provide a modest tailwind into 2024 according to company leadership.
Mako experienced installation delays leading to a soft quarter for the robotic system. Stryker executives pointed to the impact of hospital staffing shortages beyond nursing and said the unavailability of technicians delayed installations.
The company’s spine business faced lower case volumes due to competitive pressures but offset some of those declines with solid sales of enabling technology, including the new Q Guidance system. Stryker expects a “dogfight” in the segment until the spine application for Mako launches sometime in 2024.
Company CEO Kevin Lobo offered a candid appraisal of Stryker’s 2018 acquisition of K2M. He said, “Spine is the most competitive market we play in. It’s a very tough market. K2M was not a very expensive acquisition compared to the alternatives that we looked at. It’s been an okay deal. It hasn’t been one of our best deals, but it solved a problem for us where we would have frankly been growing below-market rates had we not done the deal. Now that we’ve got our enabling technology roadmap, I’m actually pretty excited about Spine in the future. We are committed to Spine long term.”
The company expects the fourth quarter to bring continued momentum for its knee and hip businesses along with a strong recovery for Mako installations.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,173.8 | $1,105.0 | $68.9 | 6.2% |
| Knees | $569.5 | $533.0 | $36.5 | 6.8% |
| Hips | $410.9 | $394.9 | $16.0 | 4% |
| Extremities | $193.4 | $177.1 | $16.4 | 9.2% |
| Spine | $267.1 | $269.0 | ($1.9) | (0.7%) |
| Trauma | $478.2 | $461.9 | $16.3 | 3.5% |
| Sports Medicine | $190.5 | $175.1 | $15.4 | 8.8% |
| Orthobiologics | $72.0 | $69.2 | $2.8 | 4% |
| Other | $81.5 | $78.6 | $2.9 | 3.7% |
| Total | $2,263.2 | $2,158.8 | $104.4 | 4.8% |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3,530.7 | $3,331.8 | $198.9 | 6% |
| Knees | $1,709.5 | $1,605.1 | $104.3 | 6.5% |
| Hips | $1,230.2 | $1,188.6 | $41.6 | 3.5% |
| Extremities | $591.1 | $538.1 | $53.0 | 9.8% |
| Spine | $808.7 | $827.1 | ($18.5) | (2.2%) |
| Trauma | $1,442.2 | $1,411.0 | $31.1 | 2.2% |
| Sports Medicine | $536.0 | $486.6 | $49.4 | 10.2% |
| Orthobiologics | $211.0 | $205.7 | $5.3 | 2.6% |
| Other | $230.5 | $228.6 | $1.9 | 0.8% |
| Total | $6,759.1 | $6,490.9 | $268.2 | 4.1% |
Orthopedic Sales by Geography
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,710.9 | $1,583.0 | $127.8 | 8.1% |
| OUS | $552.3 | $575.7 | ($23.4) | (4.1%) |
| EMEA | $298.7 | $291.4 | $7.3 | 2.5% |
| Asia Pacific | $199.2 | $226.7 | ($27.5) | (12.1%) |
| Rest of World | $54.4 | $57.6 | ($3.2) | (5.6%) |
| Total | $2,263.2 | $2,158.8 | $104.4 | 4.8% |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $5,025.6 | $4,704.2 | $321.4 | 6.8% |
| OUS | $1,733.4 | $1,786.6 | ($53.2) | (3%) |
| EMEA | $894.7 | $864.9 | $29.7 | 3.4% |
| Asia Pacific | $670.7 | $756.9 | ($86.1) | (11.4%) |
| Rest of World | $168.0 | $164.8 | $3.2 | 1.9% |
| Total | $6,759.1 | $6,490.9 | $268.2 | 4.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,479.0 | |
| Cost of Sales | $1,697.0 | 37.9% |
| Selling and Admin | $1,455.0 | 32.5% |
| R & D | $364.0 | 8.1% |
| Other | $147.0 | 3.3% |
| Net Earnings | $816.0 | 18.2% |
Stryker reported 3Q22 orthopedic sales of $2.26 billion, +4.8% compared to the third quarter of 2021. The company expects inflationary pressures and supply chain challenges to persist into next year. However, recovering procedure volumes and a strong demand signal give Stryker confidence that it can continue its run of strong revenue...
Stryker reported 3Q22 orthopedic sales of $2.26 billion, +4.8% compared to the third quarter of 2021. The company expects inflationary pressures and supply chain challenges to persist into next year. However, recovering procedure volumes and a strong demand signal give Stryker confidence that it can continue its run of strong revenue growth.
A rebound in worldwide procedure volumes boosted the company’s knee and hip sales, in particular. Hospital staffing shortages make a rapid backlog depletion unlikely, but could provide a modest tailwind into 2024 according to company leadership.
Mako experienced installation delays leading to a soft quarter for the robotic system. Stryker executives pointed to the impact of hospital staffing shortages beyond nursing and said the unavailability of technicians delayed installations.
The company’s spine business faced lower case volumes due to competitive pressures but offset some of those declines with solid sales of enabling technology, including the new Q Guidance system. Stryker expects a “dogfight” in the segment until the spine application for Mako launches sometime in 2024.
Company CEO Kevin Lobo offered a candid appraisal of Stryker’s 2018 acquisition of K2M. He said, “Spine is the most competitive market we play in. It’s a very tough market. K2M was not a very expensive acquisition compared to the alternatives that we looked at. It’s been an okay deal. It hasn’t been one of our best deals, but it solved a problem for us where we would have frankly been growing below-market rates had we not done the deal. Now that we’ve got our enabling technology roadmap, I’m actually pretty excited about Spine in the future. We are committed to Spine long term.”
The company expects the fourth quarter to bring continued momentum for its knee and hip businesses along with a strong recovery for Mako installations.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,173.8 | $1,105.0 | $68.9 | 6.2% |
| Knees | $569.5 | $533.0 | $36.5 | 6.8% |
| Hips | $410.9 | $394.9 | $16.0 | 4% |
| Extremities | $193.4 | $177.1 | $16.4 | 9.2% |
| Spine | $267.1 | $269.0 | ($1.9) | (0.7%) |
| Trauma | $478.2 | $461.9 | $16.3 | 3.5% |
| Sports Medicine | $190.5 | $175.1 | $15.4 | 8.8% |
| Orthobiologics | $72.0 | $69.2 | $2.8 | 4% |
| Other | $81.5 | $78.6 | $2.9 | 3.7% |
| Total | $2,263.2 | $2,158.8 | $104.4 | 4.8% |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3,530.7 | $3,331.8 | $198.9 | 6% |
| Knees | $1,709.5 | $1,605.1 | $104.3 | 6.5% |
| Hips | $1,230.2 | $1,188.6 | $41.6 | 3.5% |
| Extremities | $591.1 | $538.1 | $53.0 | 9.8% |
| Spine | $808.7 | $827.1 | ($18.5) | (2.2%) |
| Trauma | $1,442.2 | $1,411.0 | $31.1 | 2.2% |
| Sports Medicine | $536.0 | $486.6 | $49.4 | 10.2% |
| Orthobiologics | $211.0 | $205.7 | $5.3 | 2.6% |
| Other | $230.5 | $228.6 | $1.9 | 0.8% |
| Total | $6,759.1 | $6,490.9 | $268.2 | 4.1% |
Orthopedic Sales by Geography
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,710.9 | $1,583.0 | $127.8 | 8.1% |
| OUS | $552.3 | $575.7 | ($23.4) | (4.1%) |
| EMEA | $298.7 | $291.4 | $7.3 | 2.5% |
| Asia Pacific | $199.2 | $226.7 | ($27.5) | (12.1%) |
| Rest of World | $54.4 | $57.6 | ($3.2) | (5.6%) |
| Total | $2,263.2 | $2,158.8 | $104.4 | 4.8% |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $5,025.6 | $4,704.2 | $321.4 | 6.8% |
| OUS | $1,733.4 | $1,786.6 | ($53.2) | (3%) |
| EMEA | $894.7 | $864.9 | $29.7 | 3.4% |
| Asia Pacific | $670.7 | $756.9 | ($86.1) | (11.4%) |
| Rest of World | $168.0 | $164.8 | $3.2 | 1.9% |
| Total | $6,759.1 | $6,490.9 | $268.2 | 4.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,479.0 | |
| Cost of Sales | $1,697.0 | 37.9% |
| Selling and Admin | $1,455.0 | 32.5% |
| R & D | $364.0 | 8.1% |
| Other | $147.0 | 3.3% |
| Net Earnings | $816.0 | 18.2% |
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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.
