(Reuters) – Medical technology company Stryker Corp on Monday raised its full-year profit forecast, citing stronger demand for the company’s surgical devices.
Device makers, lately, have been reporting a recovery in sales as staff shortages ease and procedure volumes pick up in hospitals. Last week, peer Edwards Lifesciences Corp raised its sales and profit forecasts for 2023, citing strong demand for the company’s artificial heart valves.
For the first quarter, Stryker posted a 11% rise in device sales in its medical surgery and neurotechnology unit, while sales in the orthopaedics and spine segment went up by 13%.
Excluding items, the device maker reported a profit of $2.14 per share for the quarter ended March 31, beating analysts’ estimate of $2.00 per share, according to Refinitiv data. Net sales rose 12% to $4.78 billion, compared to estimates of $4.56 billion.
Stryker said supply chain pressures are gradually improving and it expects pricing to be relatively neutral for the year.
The company expects its 2023 organic net sales to grow between 8% and 9%, based on a strong order book for capital equipment and ongoing procedural recovery. It had previously expected a 7.0% to 8.5% sales growth in the year.
Stryker now expects a profit of between $10.05 and $10.25 per share, up from its prior forecast of $9.85 to $10.15 per share. Analysts expect a profit of $10.03 per share in 2023.
(Reporting by Aditya Samal; Editing by Shailesh Kuber)
