Medical equipment manufacturer Stryker retains growth potential

The manufacturer of equipment for medical procedures, Stryker Corp. (SYK), retains the growth potential, thanks to the successful conjuncture. The main driver of Stryker’s growth is an increase in the proportion of older people in the population structure. 

Inevitably lead to an increased demand for medical procedures, including invasive ones that require a large amount of auxiliary equipment. As a result, fortune Business Insights, a research company, predicts that the global medical device market will grow by 5.4% annually from $455.3 billion this year to $658 billion by 2028. One of the beneficiaries will be Stryker, which already has a strong position in the medical equipment market and a sufficient gap from competitors to increase sales in the future. 

Stryker’s net sales in the third quarter amounted to $4.16 billion, which corresponds to an 11.3% year-on-year growth rate. After deducting the added revenue from the acquisition of Wright Medical Group, which ended last November, Stryker increased revenue by 4.5% year-on-year. However, the company’s sales were almost 2% below Wall Street forecasts. 

Stryker also failed to meet analysts’ expectations for earnings per share. However, the company earned adjusted earnings of $2.2 per share in the third quarter, up 2.8% year-on-year. The pandemic remains a risk for Stryker, although the situation is beginning to improve, as many medical institutions return to regular operation and restore scheduled procedures. 

Stryker forecasts average earnings per share of $9.11 this year, representing an increase of 22.6% year-on-year and 10.3% compared to 2019. So far, we can say that Stryker is successfully coping with the challenges of the pandemic. At the auction on November 26, Stryker Corp. (SYK) stock was worth $255.15.