Benzinga | Jul 28, 2021 06:44AM EDT

Stryker Boosts Q2 Earnings, Margins After Clocking 55% Jump In Sales As Pandemic Moderates

Stryker Corp (NYSE: SYK) reported second-quarter results that topped the consensus forecast. It posted an adjusted EPS of $2.25, a stupendous increase from $0.64 a year ago, better than the Wall Street estimate of $2.12.

* Consolidated net sales of $4.3 billion increased 55.4% Y/Y and 51.8% in constant currency from 2020, beating the estimate of $4.1 billion.

* Organically, sales were up 42.9%, including 43.4% from the higher unit volume, partially offset by 0.5% from lower prices.

* Orthopedics sales of $1.6 billion increased 82.3% (50.7% organic).

* MedSurg segment clocked net sales of $1.7 billion, +32.3% (+29.6% organic)

* Neurotechnology and Spine sales increased 66.9% to $0.9 billion, +61.8% organic).

* The adjusted gross margin expanded from 57.3% to 60.0%, and the operating margin improved from 12.5% to 25.9%.

* "We delivered strong financial results in the second quarter," Stryker chairman & CEO Kevin Lobo said in a news release. "Business momentum continues to build as the pandemic moderates, and the integration of Wright Medical is pacing ahead of plan. Our positive outlook is reflected in our raised guidance."

* FY2021 Guidance: Stryker said it expects to log adjusted EPS of $9.25 - $9.40, with sales growth expectations of 9% - 10% compared to 2019.

* Price Action: SYK shares closed at $268.35 on Tuesday.