Stryker raises annual profit forecast on steady demand for surgical devices
Medical and surgical device makers have benefited from a surge in demand as more American consumers, particularly older individuals, opted for elective procedures.
Investors and analysts are monitoring how medical device manufacturers are navigating tariff impacts and assessing potential benefits from foreign currency fluctuations.
The company reduced its annual tariff impact estimate to $175 million from $200 million, which reflects a reduction in bilateral United States and China tariffs as well as the proposed tariff framework between the U.S. and the European Union.
The medical equipment maker had previously said it plans to offset any tariff hit by optimizing its manufacturing footprint.
Stryker now sees its 2025 profit per share to range between $13.40 and $13.60, compared to its prior forecast of $13.20 to $13.45. Analysts expect a profit of $13.35 per share, according to data compiled by LSEG.
Sales at Stryker's medical surgery and neurotechnology unit rose 17.3% to $3.77 billion, while its orthopedics segment saw an increase in sales of 2% to $2.25 billion.
Total revenue for the quarter ended June 30 was $6.02 billion, above analysts' expectations of $5.93 billion.
On an adjusted basis, the company earned $3.13 per share in the second quarter, beating estimates of $3.07 per share.
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Reuters
3 hours ago
- Reuters
OPEC+ gets lucky as it brings back oil output amid uncertainty
LAUNCESTON, Australia, Aug 4 (Reuters) - A couple of months ago it would have been a brave call to say that OPEC+ would be able to bring back 2.5 million barrels per day of crude production and still keep oil prices anchored around $70 a barrel. But this is exactly what has occurred, with the eight members of the producer group winding back the last of their 2.2 million bpd of voluntary cuts by September, as well as allowing a separate increase for the United Arab Emirates. The eight OPEC+ members met virtually on Sunday, agreeing to lift output by 547,000 bpd for September, adding to the increases of 548,000 bpd for August, 411,000 bpd for each of May, June and July, as well as the 138,000 bpd for April that kickstarted the unwinding of their voluntary cuts. OPEC+ stuck to their recent line that the rolling back of production cuts was justified by a strong global economy and low oil inventories. It's debatable as to whether this is actually the case. Certainly, demand growth in the top-importing region of Asia has been lacklustre. Asia's oil imports were about 25.0 million bpd in July, down from 27.88 million bpd in June and the lowest monthly total since July last year, according to data compiled by LSEG Oil Research. While China, the world's biggest crude importer, has been increasing purchases in recent months, much of this is likely because of lower prices that prevailed when June- and July-arriving cargoes were arranged. It's also the case that China has likely been adding to its stockpiles at a rapid pace, and while it doesn't disclose inventories, the surplus of crude once refinery processing is subtracted from the total available from domestic output and imports was 1.06 million bpd over the first half of 2025. It appears more likely that OPEC+ has largely been fortunate in that it has been increasing output at a time of rising risks in the crude oil market, largely from geopolitical tensions. The brief conflict between Israel and Iran in June, which was later joined by the United States, did lead to an equally brief spike in crude prices, with benchmark Brent futures reaching a six-month high of $81.40 a barrel on June 23. The price has since eased back to trade around the $70 mark, with some early weakness in Asia on Monday seeing Brent drop to around $69.35. But the point is that the Israel-Iran conflict arrested a downtrend in oil prices that had been in place for much of the first half of the year. Crude prices have also been supported in recent days by U.S. President Donald Trump's threats of wide-ranging sanctions against buyers of Russian oil unless Moscow agrees to a ceasefire in its war with Ukraine. As with everything Trump, it pays to be cautious as to whether his actions will ultimately be as drastic as his threats. But it would also be foolhardy to assume that there will be no impact on crude supplies even if any eventual measures imposed by the United States are not as drastic as feared. There are effectively only two major buyers of Russian crude, India and China. Of these two, India is the far more exposed given its refiners export millions of barrels of refined products, many made with Russian oil. India imported 2.1 million bpd of Russian oil in June, according to data compiled by commodity analysts Kpler, which is the second-highest monthly total behind only 2.15 million bpd in May 2023. In recent months, India has been buying about 40% of its crude from Russia and if it were to replace that with other suppliers, it would have a severe impact on oil flows, at least initially. It's likely that a combination of Middle East, Africa and Americas exporters could make up for India's loss of Russian barrels, but this would tighten supplies considerably and likely keep prices higher. Whether Russia and its network of shadowy traders and shippers could once again work around sanctions remains to be seen, but even if they could, it would still take some time for them to get Russian crude through to buyers. For now, much remains up in the air and OPEC+ members are following a smart strategy in taking advantage of the uncertainty to bring their production back and rebuild market share. How long this play can work is the question. Even if Russian barrels do leave the market, it's also possible that demand growth disappoints in the second half as the impact of Trump's trade war becomes more apparent, cutting global trade and lowering economic growth. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab. The views expressed here are those of the author, a columnist for Reuters.
Reuters
5 hours ago
- Reuters
China's independent oil firms elbow into Iraq's majors-dominated market
SINGAPORE/BAGHDAD, Aug 4 (Reuters) - China's independent oil companies are ramping up operations in Iraq, investing billions of dollars in OPEC's number two producer even as some global majors have scaled back from a market dominated by Beijing's big state-run firms. Drawn by more lucrative contract arrangements, smaller Chinese producers are on track to double their output in Iraq to 500,000 barrels per day by around 2030, according to estimates by executives at four of the firms, a figure not previously reported. For Baghdad, which is also seeking to lure global giants, the growing presence of the mostly privately run Chinese players marks a shift as Iraq comes under growing pressure to accelerate projects, according to multiple Iraqi energy officials. In recent years, Iraq's oil ministry had pushed back on rising Chinese control over its oilfields. For the smaller Chinese firms, managed by veterans of China's state heavyweights, Iraq is an opportunity to leverage lower costs and faster development of projects that may be too small for Western or Chinese majors. With meagre prospects in China's state-dominated oil and gas industry, the overseas push mirrors a pattern by Chinese firms in other heavy industries to find new markets for productive capacity and expertise. Little-known players including Geo-Jade Petroleum Corp ( opens new tab, United Energy Group ( opens new tab, Zhongman Petroleum and Natural Gas Group ( opens new tab and Anton Oilfield Services Group( opens new tab made a splash last year when they won half of Iraq's exploration licensing rounds. Executives at smaller Chinese producers say Iraq's investment climate has improved as the country becomes more politically stable and Baghdad is keen to attract Chinese as well as Western companies. Iraq wants to boost output by more than half to over 6 million bpd by 2029. China's CNPC alone accounts for more than half of Iraq's current production at massive fields including Haifaya, Rumaila and West Qurna 1. Iraq's shift a year ago to contracts based on profit-sharing from fixed-fee agreements - an attempt to accelerate projects after ExxonMobil and Shell scaled back - helped lure Chinese independents. These smaller firms are nimbler than the big Chinese companies and more risk-tolerant than many companies that might consider investing in the Gulf economy. Chinese companies offer competitive financing, cut costs with cheaper Chinese labour and equipment and are willing to accept lower margins to win long-term contracts, said Ali Abdulameer at state-run Basra Oil Co, which finalises contracts with foreign firms. "They are known for rapid project execution, strict adherence to timelines and a high tolerance for operating in areas with security challenges," he said. "Doing business with the Chinese is much easier and less complicated, compared to Western companies." Smaller Chinese firms can develop an oilfield in Iraq in two to three years, faster than the five to 10 years for Western firms, Chinese executives said. "Chinese independents have much lower management costs compared to Western firms and are also more competitive versus Chinese state-run players," said Dai Xiaoping, CEO of Geo-Jade Petroleum, which has five blocks in Iraq. The independents have driven down the industry cost to drill a development well in a major Iraqi oilfield by about half from a decade ago to between $4 million and $5 million, Dai said. A Geo-Jade-led consortium agreed in May to invest in the South Basra project, which includes ramping up the Tuba field in southern Iraq to 100,000 bpd and building a 200,000-bpd refinery. Geo-Jade, committing $848 million, plans to revive output at the largely mothballed field to 40,000 bpd by around mid-2027, Dai told Reuters. The project also calls for a petrochemical complex and two power stations, requiring a multi-billion-dollar investment, said Dai, a reserve engineer who previously worked overseas with CNPC and Sinopec. Zhenhua Oil, a small state-run firm that partnered with CNPC in a $3 billion deal to develop Ahdab oilfield in 2008, the first major foreign-invested project after Saddam Hussein was toppled in 2003, aims to double its production to 250,000 bpd by 2030, a company official said. Zhongman Petroleum announced in June a plan to spend $481 million on the Middle Euphrates and East Baghdad North blocks won in 2024. Chinese firms' cheaper projects can come at the expense of Iraq's goal to introduce more advanced technologies. Muwafaq Abbas, former crude operations manager at Basra Oil, expressed concern about transparency and technical standards among Chinese firms, which he said have faced criticism for relying heavily on Chinese staff and relegating Iraqis to lower-paid roles. To be sure, some Western firms are returning to Iraq: TotalEnergies announced a $27 billion project in 2023, and BP is expected to spend up to $25 billion to redevelop four Kirkuk fields in the semi-autonomous Kurdish region, Reuters reported.
Daily Mail
12 hours ago
- Daily Mail
Zillow CEO reveals what he thinks caused America's 'housing crisis'
Americans everywhere are struggling to purchase homes, with sales reaching a 30 year low in 2024. Despite the tribulations of the housing market itself, the number one real estate site in the country - Zillow - is thriving. CEO Jeremy Wacksman sat down with The New York Times to discuss what may be causing the dip in the housing market and what keeps Zillow afloat amidst it all. The Seattle resident was appointed as CEO a year ago, but has been with the company since 2009. Wacksman added that the major issue with homebuying in the United States is that there is an availability problem. 'We have an affordability crisis, which is driven by an availability crisis. It is a supply-side problem,' he said. While many complain about increasing mortgage rates, he said that it's only a small factor. 'The real problem for a home buyer is home prices are up 30, 50, 70, 100 percent, depending on the market, from pre-pandemic levels. Incomes are not up that much.' According to the US Social Security Office , the average yearly income in 2023 was $66,621, only increasing 4 percent from the year prior. Wacksman noted that if the housing industry had continued to build new properties to keep up with buyer demand, it may not have become the 'crisis' it is today. 'We have been chronically under-building since, really, the global financial crisis,' he said. 'Less supply and a lot of demand is going to keep home prices elevated.' According to Zillow , the average home value is almost $370,000 with just 1.3 million homes in the for-sale inventory. Despite the dip in purchasing and sky-high prices, Zillow is seeing hundreds of millions of unique visitors every month. The company has seen a jump in revenue and its stock is up more than 60 percent. The top site for real-estate listings in the country attracts what the internet has dubbed 'Zillow Surfers.' Those with little to no intention of purchasing a home browse on the website everyday. Wacksman welcomes such browsers. ''Zillow Surfing' is pretty pervasive, regardless of if it's a buyer's market or a seller's market,' he said. 'You spend all this time window shopping and escaping and dreaming. You are getting a little smarter about what you might want, and then something happens and you pull the trigger. 'As a marketer, I don't think you could have a stronger brand endorsement than all of the usage you get from people escaping on your platform.' The way Zillow makes money is by selling ads to real estate companies who want to reach those endlessly scrolling Zillow-surfers. The company requires agents to post listings within 24 hours of being on the market . If not, it's never allowed on the site at all. Real estate companies like Compass have grown wary of Zillow, and even filed a lawsuit claiming they maintain a monopoly, calling it a 'Zillow ban.' But Wacksman said that the lawsuit itself speaks to the larger issues of seller transparency within the United States housing market. 'The heart of the issue is the U.S. real estate market currently exists with a unique amount of transparency,' he said. 'So you and I, as a buyer and seller, can see all available listings, and that empowers us to shop on our own. There are a few companies that are looking to put the internet back in a box and hide inventory and force you to pay them. 'The lawsuit is about challenging that consumer benefit and that transparency.' Now, Zillow is trying to shift toward a 'super app' structure that allows buyers to be connected with any resources that they may need. That includes mortgage providers and rental properties as well as any other related services.
