Stryker Corporation, one of the world’s leading medical device and technology companies, is scheduled to hold its Q22020 earnings call at the end of this month on 30th July 2020. Its Q1 earnings had fallen short of expectations, with earnings per share dropping Y-o-Y from $1.88 per share to $1.84 per share.
Medical device makers, in general, have been under pressure as the pandemic outbreak has led people to postpone their treatments. Additionally, hospitals are also diverting more of their resources towards COVID-19 treatments rather than elective surgeries. Fewer procedures result in lower product sales and lower revenues for medical device makers like Stryker.
However, amidst the pessimism, there have been some important developments lately. Robot-assisted surgeries are gaining traction. They can help minimize the exposure of patients and medical workers the coronavirus. Robots make contactless surgeries possible.
Stryker has a robotic-arm assisted surgery platform called Mako. The platform has witnessed robust demand and its order book has grown to healthy levels as well. The Mako System helped bring the world’s first and only robotic procedure total hip and knee replacements as well as partial knee replacements. Stryker’s business has also gained significant traction from its Mako-driven total knee arthroplasty application.
In other recent Stryker news, Moody’s assigned a Baa1 rating to Stryker’s proposed unsecured notes offering. The offering was aimed at raising financing to complete the pending $5.4 billion acquisition of Wright Medical Group B.V. The rating was assigned at the end of May 2020 and the acquisition is expected to close in the second half of 2020.
Stryker Corporation stock closed at $183.90 on 6th July 2020, down 10.73% for the past month.