How Stryker Was Able To Raise Its Guidance Even After Facing Currency Headwinds
Stryker Corporation (NYSE: SYK) declared its first quarter results on April 22, which were slightly better than analysts’ estimates. Kevin Lobo, Stryker CEO, was recently 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 are faced. 70 percent of our sales in the first quarter 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.”
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, in the blood vessel supplying blood to the brain. That’s going to be a new break-out market,” Lobo concluded.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.