One-Trick Medtech Companies
Kirill Ivanov / Alamy Stock Photo
Companies with diversified portfolios won the day when it came to earnings. Just look at Hologic, look at Abbott Laboratories. These companies had diagnostics on hand to boost revenue during COVID-19 and other offerings to level things off when testing demands waned.
But the companies that had a singular focus suffered the most – especially those in orthopedics. Volume procedures dropped due to uncertainty and even the large-cap companies with pristine portfolios were affected.
An example of this is Stryker, which operates in the orthopedics space. The Kalamazoo, MI-based company suffered a double whammy softer-than-expected third-quarter results as multiple business segments (especially hips, knees, and spine) experienced procedure deferrals and cancellations and ongoing uncertainty related to both COVID and hospital staffing shortages as the reason.