Medical - Devices

The device group gave back ground this quarter: the average sentiment score slid from 8 to 7.1, a 0.9-point decline, with five downgrades against two upgrades among the 10 names reporting in both periods. The biggest move was Stryker (SYK), which fell from 8 to 4 after a cyber incident late in the quarter shut down production for nearly three weeks, holding organic sales growth to 2.4%, pushing adjusted EPS down 8.5% to $2.60, and compressing adjusted gross margin 190 basis points to 63.6%. Management maintained full-year guidance of 8%-9.5% organic growth and $14.90-$15.10 in adjusted EPS, expressing confidence that most lost sales will be recovered through the rest of the year, helped by a record Q1 for Mako installations globally.