Stryker Earnings: Strength in Medical Surgical Business More Than Offsets Slower Knee Segment Sales

Stryker delivered strong first-quarter results that slightly exceeded our expectations on the top- and bottom lines. However, minor adjustments to our assumptions for the full year weren’t enough to materially shift our fair value estimate. With quarterly consolidated revenue up 10% in constant currency, Stryker continued to outpace the larger orthopedic devices market. We remain confident in the switching costs and intangible assets that underpin Stryker’s wide economic moat. Considering the firm remains in the early stages of commercialization for key new products, we anticipate demand can support Stryker’s above-average growth through 2024.