Stryker Corporation (NYSE: SYK) Organic net sales fell 1.1% and 4.8% in the fourth quarter and full year including 0.3% and 4.1% from decreased unit volume and 0.8% and 0.7% from lower prices. Orthopedics net sales of $1.5 billion and $5.0 billion increased 4.0% in the fourth quarter and 2.8% in constant currency. Organic net sales of the segment fell 5.8% and 8.1% in the quarter.
MedSurg net sales of $1.9 billion and $6.4 billion increased 2.3% in the quarter and 1.5% in constant currency. MedSurg net sales of $1.9 billion and $6.4 billion increased 2.3% in the quarter and 1.5% in constant currency. Organic net sales of the segment increased 1.3% in the quarter including 1.2% from increased unit volume and 0.1% from higher prices. Neurotechnology and Spine net sales of $0.9 billion and $3.0 billion increased 3.5% in the quarter and 2.1% in constant currency. Organic net sales of the segment increased 2.1% in the quarter including 4.0% from increased unit volume partially offset by 1.9% from lower prices.
The company’s adjusted gross profit margin was 65.1% and 63.8% in the fourth quarter and full year, and adjusted operating income margin was 29.2% for the quarter, which reflects an improvement of 90 basis points, and 24.4% for the full year, a decline of 190 basis points. The company reported the adjusted net earnings of $1.1 billion and $2.8 billion increased 13.0% in the quarter and decreased 9.9% in the full year.
SYK in the fourth quarter of FY 20 has reported the adjusted earnings per share of $2.8, beating the analysts’ estimates for the adjusted earnings per share of $2.55. The company had reported the adjusted revenue growth of 3.2 percent to $4.3 billion in the fourth quarter of FY 20, slightly missing the analysts’ estimates for revenue of $4.33 billion.
SYK expects 2021 organic net sales growth to be in the range of 8% to 10% from 2019, and expects adjusted net earnings per diluted share to be in the range of $8.80 to $9.20. The forecasts include the previously announced 10 cents of dilution driven by the acquisition of Wright Medical for the full year. Consistent with the pricing environment experienced in both 2019 and 2020, the company expects continued unfavorable price reductions of approximately 1% in 2021.