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Investing.com -- Medical (TASE:BLWV) technology company Stryker Corporation (NYSE:SYK) reported second-quarter earnings that exceeded analyst expectations, but shares tumbled 4.7% as investors appeared to focus on concerns beyond the headline numbers.
The company posted adjusted earnings per share of $3.13 for the second quarter, beating the analyst estimate of $3.07. Revenue came in at $6.02 billion, surpassing the consensus estimate of $5.94 billion and representing an 11.1% increase compared to the same quarter last year. Organic sales growth was robust at 10.2%, driven primarily by a 9.7% increase in unit volume.
Despite the strong performance and raised full-year guidance, Stryker’s stock declined significantly in trading following the announcement. The company’s MedSurg and Neurotechnology segment showed particular strength, with sales increasing 17.3% to $3.8 billion, while Orthopaedics sales rose 2.0% to $2.2 billion.
"We again delivered double-digit sales and adjusted earnings per share growth in the second quarter," said Kevin A. Lobo, Chair and CEO. "Our strong sales and earnings power reflect demand for our products, our durable innovation pipeline and ongoing operational execution."
Stryker raised its full-year 2025 outlook, now expecting organic net sales growth of 9.5% to 10.0% and adjusted earnings per share between $13.40 and $13.60, above the analyst consensus of $13.36. The midpoint of this guidance ($13.50) represents a $0.14 increase over the analyst estimate.
The company also noted that it now estimates a net impact from tariffs in 2025 of approximately $175 million, reflecting recent changes in bilateral United States and China tariffs as well as the proposed tariff framework between the United States and the European Union.
Stryker’s adjusted operating income margin increased 110 basis points to 25.7% compared to the same quarter last year, demonstrating improved operational efficiency despite ongoing market challenges.
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