Stryker Earnings: International Markets Fuel Strong Quarterly Results

Stryker delivered second-quarter results that featured stronger orthopedic growth following muted large joint growth in the first quarter. We plan to modestly raise our fair value estimate to reflect cash flows realized since our last valuation update. Stryker continues to benefit from the adoption of some of its new products, and we anticipate this should fuel high-single-digit growth that we’ve projected for the full year. The firm has also held expenses in check, which puts it on track to meet our full-year expectations. Importantly, the line up of novel technology across instruments, extremities, spine, and trauma underscore the firm’s ability to both generate and commercialize new technologies, supporting its wide moat.