Shares of orthopedics maker Stryker climbed higher Wednesday a day after the company reported higher-than-expected sales and the resolution of regulatory issues.

The Kalamazoo, Mich.-based company reported a drop in earnings Tuesday to $229 million, or 57 cents per share, on restructuring charges. However, the company's sales edged up to $1.65 billion, higher than the $1.61 billion predicted by Wall Street and above second-quarter sales of $1.63 billion.

The company also said it resolved a warning letter issued by the Food and Drug Administration over problems at its biotech unit.

Stryker shares rose $3.24, or 7.2 percent, to $48.52 in afternoon trading.

Sales of the company's hip and knee replacements, as well as hospital equipment, were higher than analysts expected.

"We are impressed with Stryker's top line as these results were achieved amid what we believe to be a very challenging backdrop," wrote Barclays Capital analyst Adam Feinstein. Despite that positive performance, Feinstein warned that orthopedic sales could slide next year as patients delay expensive optional surgical procedures.

He holds an "Underweight" rating on the stock with a $44 price target.

Baird analyst Jeff Johnson noted the positive news that Stryker resolved issues with its Hopkinton, Mass.-based biotech plant cited in an FDA warning letter.

Stryker has received four warning letters in recent years, including one last year that triggered a recall of certain hip replacement parts. The FDA said long-standing manufacturing problems had caused multiple patient complaints and forced some to have follow-up surgeries.

While the company still has three more letters to resolve, Johnson said the latest news "suggests that on some level Stryker is realizing tangible, positive progress in its quality initiatives and relationship with the FDA."

Johnson holds a "Outperform" rating on the stock and a price target of $53.