Medical device maker Stryker has forecasted 2025 earnings higher than Wall Street projections, fueled by a boom in demand for surgical and medical equipment. The company has been helped by a rise in elective procedures, especially among older Americans who had delayed operations during the COVID-19 pandemic. Stryker also reported selling its U.S. spinal implants business and a significant leadership shift.

Key Highlights:
Earnings Guidance:
Stryker forecasts earnings per share adjusted for 2025 of between $13.45 and $13.70, better than the $13.51 consensus estimate from analysts.

Strong Sales Growth:

• Medical surgery and neurotechnology unit revenue grew 10.6% to $3.89 billion.

• Orthopedics segment registered a 10.8% increase, reaching $2.55 billion.

Strategic Business Sale:

• The firm is selling its U.S. spinal implants business to Viscogliosi Brothers, which will establish a new entity, VB Spine.

• The transaction is anticipated to close during the first half of 2025.

Leadership Transition:
Preston Wells, Stryker's orthopaedics unit finance chief, will succeed CFO Glenn Boehnlein, effective April 1, 2025.

Large Acquisition:
Stryker earlier this month agreed to buy Inari Medical for $4.9 billion, adding to its portfolio of vascular disease treatments.

Q4 Performance:

• Total revenue during the quarter ended Dec. 31, 2024, stood at $6.44 billion, surpassing the forecast of analysts at $6.36 billion.

• Adjusted earnings per share were at $4.01, more than the estimated $3.87.

• Although solid performance, Stryker stock dropped 1.6% to $389 in after-hours trading.

Quotes from Leaders or Officials:
Stryker Representative (Anonymous):
"Our solid financial performance is a testament to the increasing demand for surgical and medical devices as elective procedures bounce back post-pandemic. We continue to focus on building our product portfolio and returning shareholder value."Stryker's positive earnings projection, astute business sell-offs, and significant acquisitions demonstrate the company's promising growth pattern in 2025. The sustained growth in elective procedures and penetration into vascular disease treatment place Stryker for continued financial prosperity. The firm's future leadership change and spinal implant business sale will also influence its strategic trajectory.