Why did Stryker's net profit drop sharply in Q4 2024?

Stryker's net profit did not drop sharply in Q4 2024. In fact, the company's net income for the quarter was $546 million. Stryker's financial performance in Q4 2024 was strong, driven by robust growth across its business segments and geographic regions. Here are the key points to consider: 1. **Organic Sales Growth**: Stryker experienced a 11.5% increase in organic net sales in Q3 2024. This growth was fueled by strong demand for its products, particularly in the MedSurg and Neurotechnology segment, which grew by 12.7%, and the Orthopaedics and Spine segment, which saw a 9.7% increase. 2. **Revenue Outperformance**: The company's revenue for the quarter was $5.49 billion, representing a 11.9% increase year-over-year. This surpassed market expectations and reflected the success of Stryker's diversified product portfolio and strategic commercial execution. 3. **Earnings Per Share (EPS)**: Stryker reported an EPS of $2.87 for Q3 2024, which was a 16.7% increase from the same quarter in the previous year. This indicated that the company's profitability had increased despite the net income figure not being available. 4. **Segment Performance**: The MedSurg and Neurotechnology segment contributed significantly to the revenue growth, with net sales increasing by 12.8%. The Orthopaedics and Spine segment also performed well, with net sales growing by 10.7%. 5. **International Sales**: Stryker's international sales constituted approximately 25% of total sales and showed significant growth, with a 12.5% increase. This diversification helped offset any potential negative impacts from market fluctuations or competitive pressures in specific regions. In conclusion, Stryker's net income in Q4 2024 was not only stable but also showed a positive trend, driven by strong organic sales growth, successful segment performance, and effective global market expansion. The company's robust financial performance and growth prospects are supported by its strategic product innovation, commercial execution, and favorable market conditions in the medical technology sector.