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A Review of the Five Largest Orthopedic Companies' 1Q:04 Financial Results
BY JOHN CHOPACK, MAY 17, 2004
We tabulated the five largest general orthopedic companies' financial results for the 1Q:04. The companies include Stryker, Zimmer, Biomet, Smith & Nephew and Wright Medical, each of which has a market capitalization in excess of $1 billion. Although many subscribers will use the table to compare one against each other, we feel that the most interesting aspect of the data is the cumulative results. During the 1Q:04 the cumulative revenues for the five companies totaled $2.8 billion, which was a 21% increase over the 1Q:03. Earnings increased by 31% over the 1Q:03 with net profit margins increasing by 120 basis points to 15.5%. In addition, the cumulative market capitalization increased from $39 million to $59 million — a 50% return during the trailing 12 months.
With a 20% increase in revenues, a 30% increase in earnings and a 50% return on investment, it is clear that orthopedics is a sector that deserves attention!
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1Q:04 |
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1Q:03 |
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% Change |
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Net Revenues |
Net Income |
Profit Margin |
Market Cap |
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Net Revenues |
Net Income |
Profit Margin |
Market Cap |
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Net Revenues |
Net Income |
Market Cap |
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| Biomet |
$410.2 |
$86.6 |
21.1% |
$9,847 |
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$354.0 |
$72.6 |
20.5% |
$8,026 |
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15.9% |
19.3% |
22.7% |
| Smith & Nephew^ |
$624.6 |
$74.4 |
11.9% |
$9,894 |
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$496.6 |
$42.5 |
8.6% |
$6,193 |
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25.8% |
74.9% |
59.8% |
| Stryker |
$1,035.1 |
$135.9 |
13.1% |
$19,853 |
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$846.9 |
$104.1 |
12.3% |
$13,157 |
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22.2% |
30.5% |
50.9% |
| Zimmer* |
$742.2 |
$137.6 |
18.5% |
$19,396 |
|
$622.2 |
$112.3 |
18.1% |
$11,953 |
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19.3% |
22.5% |
62.3% |
| Wright Medical** |
$74.9 |
$6.6 |
8.8% |
$1,141 |
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$58.6 |
$4.8 |
8.2% |
$644 |
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27.8% |
37.2% |
77.2% |
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| Total |
$2,812.1 |
$434.5 |
15.5% |
$58,990 |
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$2,319.8 |
$331.6 |
14.3% |
$39,329 |
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21.2% |
31.0% |
50.0% |
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1Q:03 |
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Net Revenues |
Net Income |
Profit Margin |
Market Cap |
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| Biomet |
$354.0 |
$72.6 |
20.5% |
$8,026 |
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| Smith & Nephew^ |
$496.6 |
$42.5 |
8.6% |
$6,193 |
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| Stryker |
$846.9 |
$104.1 |
12.3% |
$13,157 |
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| Zimmer* |
$622.2 |
$112.3 |
18.1% |
$11,953 |
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| Wright Medical** |
$58.6 |
$4.8 |
8.2% |
$644 |
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| Total |
$2,319.8 |
$331.6 |
14.3% |
$39,329 |
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1Q:04 Year-Over-Year % Change |
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Net Revenues |
Net Income |
Market Cap |
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| Biomet |
15.9% |
19.3% |
22.7% |
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| Smith & Nephew^ |
25.8% |
74.9% |
59.8% |
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| Stryker |
22.2% |
30.5% |
50.9% |
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| Zimmer* |
19.3% |
22.5% |
62.3% |
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| Wright Medical** |
27.8% |
37.2% |
77.2% |
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| Total |
21.2% |
31.0% |
50.0% |
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| ^ Smith & Nephew coversion rates 1Q:04 = 1.87GBP to $1 1Q:03
= 1.57 to $1 |
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| * Zimmer 1Q:04 is adjusted for acquisition costs. 1Q:03 numbers
include Centerpulse finanicals & market cap |
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| * Wright Medical 1Q:03 Net Income is adjusted for acquired
in-process R&D expense |
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| Reported numbers which includes foreign currency effects |
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Hips? |
Knees |
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| Biomet |
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| Smith & Nephew |
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| Stryker |
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| Zimmer |
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| Wright Medical |
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