Stryker Corporation (SYK) is one of the largest medical technology companies in the world that delivers surgical tools and other products and services to orthopedics, medical and surgical, and neurotechnology and spine markets.
The company generated 43% of its revenue from medical and surgical, 35% from orthopedics and 22% from neurotechnology and spine during the third quarter of 2020. In terms of growth, neurotechnology and spine saw the fastest growth. Approximately three quarters of revenue comes from the United States with the remaining coming from international markets.
A Quick COVID-19 Recovery
Stryker’s products and services primarily target the medical elective markets, which experienced a significant contraction during the COVID-19 lockdowns in March. Since then, the company’s revenue has sharply recovered to their prior levels as elective surgeries have resumed in most states, and hospitals continue to fight the COVID-19 pandemic.
Third-quarter revenue rose by 4.2% to $3.74 billion, driven by improvements in orthopedics and neurotech and spine, beating consensus estimates by $330 million, while non-GAAP earnings hit $2.14 per share, beating consensus estimates by 71 cents per share. Adjusted operating income margins also improved by 260 basis points to 28% for the quarter.
The company raised its dividend by 9.6% to 63 cents per share following the recovery. The dividend is payable on January 29, 2021, to shareholders on record as of December 31, 2020.
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