(Reuters) – Stryker raised its annual profit forecast on Thursday as the medtech company sees strong demand for its medical and surgical devices, aided by a post-pandemic pickup in surgical procedure volumes at hospitals.
The company also beat Wall Street estimates for profit in the second quarter and became the latest in line to benefit from the recent boost to medtech businesses. Larger rivals like Abbott Laboratories and Johnson & Johnson have also beaten expectations, driven by the demand for medical devices after the pandemic.
In the second quarter, sales at Stryker’s medical surgery and neurotechnology unit rose 12.2%, to $2.9 billion, while sales in the orthopedics and spine segment rose nearly 10%, to $2.14 billion.
The company had earlier said supply-chain pressures are gradually improving and it expects pricing to be relatively neutral for the year.
The joint-implant maker now expects a profit of $10.25 to $10.45 per share, compared to its prior forecast of between $10.05 and $10.25 per share.
Analysts were expecting a profit of $10.16 for the year, according to Refinitiv IBES data.
Excluding items, Stryker reported a profit of $2.54 per share for the quarter ended June 30, beating analysts’ estimate of $2.38 per share, according to Refinitiv data.
The company’s revenue in the second quarter rose 11.2%, to $5.0 billion, above analysts’ average estimates of $4.83 billion.
(Reporting by Mariam Sunny in Bengaluru; Editing by Pooja Desai)