Supply chain woes send Stryker stock tumbling 7.7%

Stryker Corp.'s stock experienced a significant drop of up to 7.7% on Tuesday morning following executives' discussion of persistent issues in its peripheral vascular and joint replacement operations at the Wells Fargo Healthcare Conference. CFO Preston Wells informed the audience that a manufacturing problem continues to hinder Stryker's ability to maintain full inventory for customers and prevent the company from capitalizing on new business opportunities.

The company had anticipated resolving this issue by the third quarter, but it persists into the third and fourth quarters. Similarly, Stryker's joint replacement business faced challenges, with stronger-than-expected performance in June leading to a recovery that did not materialize as anticipated during the summer months. Wells noted that the company is currently experiencing a higher degree of seasonality than usual, which has resulted in weaker performance than expected so far this quarter.

However, the CFO anticipates a better September. The decline in Stryker's shares also affected those of its peer, Zimmer Biomet, another medical technology company.