Stryker (SYK) has been pretty active since the beginning of this year.
On January 3, it announced the acquisition of the neurovascular division of the Boston Scientific, the global leader in the $900 million neurovascular market worldwide, including products used for the minimally invasive treatment of hemorrhagic and ischemic stroke.
On June 28, Stryker completed the acquisition of Orthovita Inc., a leading orthobiologic and biosurgery products developer and manufacturer.
On July 6, Stryker bought privately-held Memometal Technologies. This is what Stephen P. MacMillan, Chairman, President and Chief Executive Officer of Stryker, was heard saying.
"The acquisition of Memometal provides Stryker with the platform to further establish our company as a key player in the rapidly growing foot and hand segment of the extremities market and creates a strong presence in the podiatric surgery market."
It seems the company is all set to make its presence in the biosurgery market. And to be honest, it seems to be a positive step, keeping in mind that the medical industry has a lot to do with the scale, patents and innovation.
Although these string of acquisitions should have shown in the bottom-line of the company in the quarterly results, the last quarter didn't see any significant investment, and thus, there was no cut of the net income of the company in the last quarter.
But as it seems, the acquisitions did play a role in the maximization of revenues, of course. Consolidated third quarter net revenue rose to $2.03 billion, up by 14.9% over the previous year. And this is attributed to the increased market presence, the better range of products and lower prices being offered through the acquisitions.
"It was another quarter of consistent and solid sales and earnings growth, despite the continued challenges presented in today's difficult economic environment," commented Stephen P. MacMillan, Chairman, President and Chief Executive Officer.
"We are on track to achieve double-digit sales growth in 2011 and adjusted per share earnings at the high end of the range we targeted at the start of the year, underscoring the strength of our diversified sales footprint."
And future for sales revenue in 2011 seems to be bright as well. If everything holds right, starting from the current currency levels to the steady medical shipments, revenue is expected to grow by around 11-13% for the rest of the year.
Looking at the figures, even the operating margin of 23.93% stands in par with 23.37% of Medtronic, 21.72% of Zimmer Holdings and 23.22% of Smith & Nephew. I would agree with Mr. MacMillan and say that when a company gives strong quarters after quarters, it seems to be a good investment.