Stryker Corporation (SYK) Q3 2022 Earnings Call Transcript

Stryker Corporation (NYSE:SYK) Q3 2022 Earnings Conference Call October 31, 2022 4:30 PM ET

Company Participants

Kevin Lobo - Chair and Chief Executive Officer

Glenn Boehnlein - Chief Financial Officer

Jason Beach - Vice President, Investor Relations

Conference Call Participants

Robert Marcus - JPMorgan

Larry Biegelsen - Wells Fargo

Vijay Kumar - Evercore ISI

Pito Chickering - Deutsche Bank

Matthew O'Brien - Piper Sandler

Joshua Jennings - Cowen & Co.

Matthew Miksic - Barclays

Rick Wise - Stifel

Drew Ranieri - Morgan Stanley

David Saxon - Needham & Company

Steven Lichtman - Oppenheimer

Ryan Zimmerman - BTIG

Matthew Taylor - Jefferies

Samuel Brodovsky - Truist Securities

Jayson Bedford - Raymond James

Jeff Johnson - Baird

Operator

Welcome to the Third Quarter 2022 Stryker Earnings Call. My name is Megan, and I'll be your operator for today's call. [Operator Instructions] This conference call is being recorded for replay purposes.

Before we begin, I would like to remind you that the discussions during this conference call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company's most recent filings with the SEC.

Also, the discussions will include certain non-GAAP financial measures. Reconciliations to the most directly and comparable GAAP financial measures can be found in today's press release that is an exhibit to Stryker's current report on Form 8-K filed today with the SEC.

I will now turn the call over to Mr. Kevin Lobo, Chair and Chief Executive Officer. You may proceed, sir.

Kevin Lobo

Welcome to Stryker's third quarter earnings call. Joining me today are Glenn Boehnlein, Stryker's CFO; and Jason Beach, Vice President of Investor Relations. For today's call, I'll provide opening comments, followed by Jason with the trends we saw during the quarter and updates on Vocera and capital equipment. Glenn will then provide additional details regarding our quarterly results before opening the call to Q&A. For the quarter, organic sales growth was 10% with double-digit growth from our MedSurg and Neurotechnology businesses led by Endoscopy, Medical and Neurocranial.

Our Hip and Knee businesses also delivered double-digit growth, reflecting the continued recovery of elective procedures and our worldwide Mako momentum. Lastly, we continued our strong international performance with double-digit organic growth led by Europe, Canada and emerging markets despite negative growth in China. For the quarter, we delivered adjusted EPS of $2.12 a share driven by our strong sales performance, partially offsetting negative foreign currency and inflationary pressures. We expect these pressures to continue but at a more moderate level for the remainder of 2022. We are pleased with our strong sales growth, which would have been even higher if not for material shortages, mostly affecting Medical and Instruments.