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Stryker reported 1Q22 orthopedic sales of $2,197 million, +6.2% compared to 1Q21.
The company benefitted from procedure volume recovery across orthopedics as well as new product introductions, like the Insignia hip stem. The ongoing integration of Wright Medical continued its progress with both the foot/ankle and shoulder businesses turning in strong performances in the quarter.
Stryker’s large capital sales, including Mako, struggled during the first quarter due to supply constraints and hospital staffing shortages leading to delayed installations. The company’s Other Orthopedic reporting segment, which houses Mako revenue, declined -20% compared to the first quarter of last year. Company leaders, however, remain extremely bullish on Mako’s prospects for the full year.
Stryker’s CFO Glenn Boehnlein warned some rising costs could be permanent. He said, “There are these spot buys where we’re paying exorbitant prices for chips and the related electronic components. There are also increases in labor or supplier labor, warehouse and distribution costs are going up. Freight is another place where we’re seeing real increases. I do see some of that easing up, but I would tell you for the longer term, these labor and transportation costs are probably a little more permanent than some of the other costs as we think about it.”
The company said that it expects to achieve the high end of its +6% to +8% organic growth guidance for 2022 as some pressures abate in the second half of the year.
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
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,127.6 | $1,050.8 | $76.8 | 7.3% |
| Knees | $545.9 | $502.4 | $43.5 | 8.7% |
| Hips | $388.5 | $372.9 | $15.6 | 4.2% |
| Extremities | $193.1 | $175.5 | $17.7 | 10.1% |
| Spine | $265.5 | $265.2 | $0.2 | 0.1% |
| Trauma | $491.8 | $462.2 | $29.6 | 6.4% |
| Sports Medicine | $166.5 | $151.3 | $15.2 | 10% |
| Orthobiologics | $68.8 | $66.1 | $2.7 | 4.1% |
| Other (CMF) | $76.8 | $72.9 | $3.9 | 5.4% |
| Total | $2,197.0 | $2,068.5 | $128.5 | 6.2% |
Orthopedic Sales by Geography
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,609.6 | $1,468.1 | $141.5 | 9.6% |
| OUS | $587.4 | $600.4 | ($13.1) | (2.2%) |
| EMEA | $285.6 | $279.3 | $6.4 | 2.3% |
| Asia Pacific | $241.7 | $258.6 | ($16.9) | (6.5%) |
| Rest of World | $60.1 | $62.6 | ($2.5) | (4%) |
| Total | $2,197.0 | $2,068.5 | $128.5 | 6.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,275.0 | |
| Cost of Sales | $1,541.0 | 36% |
| Selling and Admin | $1,710.0 | 40% |
| R & D | $413.0 | 9.7% |
| Other | $288.0 | 6.7% |
| Net Earnings | $323.0 | 7.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Stryker reported 1Q22 orthopedic sales of $2,197 million, +6.2% compared to 1Q21.
The company benefitted from procedure volume recovery across orthopedics as well as new product introductions, like the Insignia hip stem. The ongoing integration of Wright Medical continued its progress with both the foot/ankle and shoulder businesses turning...
Stryker reported 1Q22 orthopedic sales of $2,197 million, +6.2% compared to 1Q21.
The company benefitted from procedure volume recovery across orthopedics as well as new product introductions, like the Insignia hip stem. The ongoing integration of Wright Medical continued its progress with both the foot/ankle and shoulder businesses turning in strong performances in the quarter.
Stryker’s large capital sales, including Mako, struggled during the first quarter due to supply constraints and hospital staffing shortages leading to delayed installations. The company’s Other Orthopedic reporting segment, which houses Mako revenue, declined -20% compared to the first quarter of last year. Company leaders, however, remain extremely bullish on Mako’s prospects for the full year.
Stryker’s CFO Glenn Boehnlein warned some rising costs could be permanent. He said, “There are these spot buys where we’re paying exorbitant prices for chips and the related electronic components. There are also increases in labor or supplier labor, warehouse and distribution costs are going up. Freight is another place where we’re seeing real increases. I do see some of that easing up, but I would tell you for the longer term, these labor and transportation costs are probably a little more permanent than some of the other costs as we think about it.”
The company said that it expects to achieve the high end of its +6% to +8% organic growth guidance for 2022 as some pressures abate in the second half of the year.
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
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,127.6 | $1,050.8 | $76.8 | 7.3% |
| Knees | $545.9 | $502.4 | $43.5 | 8.7% |
| Hips | $388.5 | $372.9 | $15.6 | 4.2% |
| Extremities | $193.1 | $175.5 | $17.7 | 10.1% |
| Spine | $265.5 | $265.2 | $0.2 | 0.1% |
| Trauma | $491.8 | $462.2 | $29.6 | 6.4% |
| Sports Medicine | $166.5 | $151.3 | $15.2 | 10% |
| Orthobiologics | $68.8 | $66.1 | $2.7 | 4.1% |
| Other (CMF) | $76.8 | $72.9 | $3.9 | 5.4% |
| Total | $2,197.0 | $2,068.5 | $128.5 | 6.2% |
Orthopedic Sales by Geography
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,609.6 | $1,468.1 | $141.5 | 9.6% |
| OUS | $587.4 | $600.4 | ($13.1) | (2.2%) |
| EMEA | $285.6 | $279.3 | $6.4 | 2.3% |
| Asia Pacific | $241.7 | $258.6 | ($16.9) | (6.5%) |
| Rest of World | $60.1 | $62.6 | ($2.5) | (4%) |
| Total | $2,197.0 | $2,068.5 | $128.5 | 6.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,275.0 | |
| Cost of Sales | $1,541.0 | 36% |
| Selling and Admin | $1,710.0 | 40% |
| R & D | $413.0 | 9.7% |
| Other | $288.0 | 6.7% |
| Net Earnings | $323.0 | 7.6% |
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.
