Stryker Corporation on Thursday maintained its full-year profit outlook but fell short of Wall Street expectations for first-quarter revenue and earnings, as weaker demand for implants and devices used in complex procedures from spinal to orthopedic surgeries weighed on performance.
The company, known for producing joint replacements and implants for bone repair, reaffirmed its forecast for adjusted annual earnings in the range of $14.90 to $15.10 per share.
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An Iranian-linked hacking group known as Handala claimed responsibility in March for a disruptive cyberattack on Stryker Corporation, which affected operations by limiting access to internal systems and reportedly led to delays in some surgeries.
Employees and contractors said on social media that the group’s logo appeared on their login screens, although Reuters was unable to independently verify those claims.
Stryker mainly competes with Zimmer Biomet and Johnson & Johnson in the orthopedics market, where all three vie for market share in areas such as hip and knee replacements, trauma care, and sports medicine.
Sales in Stryker Corporation’s largest division, medical surgery and neurotechnology, rose 5% to $3.21 billion in the quarter but came in below analysts’ expectations of $3.83 billion.
Meanwhile, the orthopedics segment posted a 6.3% increase in sales to $2.81 billion, exceeding estimates of $2.51 billion.
The Michigan-based company reported total quarterly revenue of $6.02 billion for the period ended March 31, missing analysts’ forecasts of $6.35 billion, according to LSEG data.
On an adjusted basis, Stryker reported earnings of $2.60 per share, falling short of expectations of $2.98 per share.
