Stryker Corp. shares declined as much as 7.7% on Tuesday morning after the company’s Chief Financial Officer, Preston Wells, discussed persistent supply‑chain and manufacturing challenges at the Wells Fargo Healthcare Conference. Wells explained that a manufacturing problem continues to prevent the company from maintaining full inventory supply to customers and also limits its ability to pursue new business opportunities. Although the issue was originally expected to be resolved in the third quarter, Wells indicated that it is likely to persist into the fourth quarter.
Regarding the joint replacement business, the company reported a strong performance in June and had anticipated a continued recovery through the summer months. However, the segment experienced more pronounced seasonal patterns than usual, resulting in weaker performance than expected for the quarter. The company remains optimistic about a better outcome in September.
Shares of peer medical‑technology firm Zimmer Biomet also moved lower in response to the same news.