How Stryker Corporation Was Able To Rise Its Guidance Even After Facing Currency Headwinds? CEO Explains

Stryker Corporation SYK declared its first-quarter results on April 22, which wee slightly better than analysts’ estimates. Kevin Lobo, Stryker CEO, was recently seen on CNBC discussing the company’s quarterly results and what’s driving the growth for Stryker.

A Growth Company

“We had a terrific first-quarter, great growth,” Lobo said. “We have had three years of growing above the market, about 200 basis points faster than the market. So, Stryker is a growth company. We became public in 1979, 35 straight years we have had growth. So, growth is on the agenda.”

Overcoming Currency Headwinds

On currency headwinds the company is facing, Lobo said, “Even though we had foreign currency headwinds just like all companies have faced. 70 percent of our sales in the United States and we have a very strong U.S. business. So, our overall growth even net of currency was over 3 percent growth.”

“You are seeing many companies report negative reported growth because of foreign currencies. So, it is an impact, it is going to impact us about $0.30 a share over the course of the year, but we are able to raise our guidance based on the strong underlying growth.”

Growth Drivers

He continued, “So, organic acquisitions, growth and then through acquisitions we have robotic surgery, robotic-assisted surgery. Mako (Mako Surgicals) was a big deal for us. That’s a breakout, game-changing, new platform.”

“And then stroke is an area we are the leader in stroke right now for hemorrhagic stroke. But there is a new market emerging for ischemic stroke, which are clots, [blood] in the blood vessel supplying blood to the brain. That’s going to be a new breakout market,” Lobo concluded.