Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Smith & Nephew Plc    SN.   GB0009223206


SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Smith & Nephew hurt by tough markets in China and Gulf states

02/09/2017 | 06:50am EST

LONDON (Reuters) - Smith & Nephew (>> Smith & Nephew plc), Europe's biggest manufacturer of artificial hips and knees, reported a 7 percent drop in full-year trading profit, missing analysts' forecasts, as tough conditions in China and Saudi Arabia kept growth in check.

LONDON (Reuters) - Smith & Nephew (>> Smith & Nephew plc), Europe's biggest manufacturer of artificial hips and knees, reported a 7 percent drop in full-year trading profit, missing analysts' forecasts, as tough conditions in China and Saudi Arabia kept growth in check.

The company has focused on emerging markets in recent years to boost sluggish demand in the United States and Europe, where it competes with Zimmer (>> Zimmer Biomet Holdings Inc) and Stryker (>> Stryker Corporation).

However, a slowdown in China has been compounded by destocking by distributors, the company said, while trading in the oil-dependent Gulf states had been "very difficult".

Smith & Nephew reported trading profit of $1.02 billion (0.81 billion pounds) on revenue up 2 percent on an underlying basis at $4.67 billion.

Chief Executive Olivier Bohuon said the company had delivered growth, but not at the level it had wanted.

"Market conditions in China and the Gulf states together shaved more than a percentage point of growth off the group in 2016," he said on Thursday, adding that China had returned to growth in the second half.

Bohuon said he expects growth to improve in 2017 and that the company's forecasts, which were unusually precise for Smith & Nephew, underline his confidence.

The group expects underlying revenue to grow by 3-4 percent and the trading profit margin to improve by 20-70 basis points, based on a combination of efficiency and product innovation.

Robotic procedures would expand from partial knee reconstructions to the total knee, Bohuon said, and the company had launched new knee implants and sports medicine products.

Shares in Smith & Nephew, which also makes treatments for chronic wounds such as leg ulcers and pressure sores, fell as much as 4 percent to eight week lows after the results. At 1128 GMT they were down 2.4 percent at 11.72 pounds.

Analysts at J.P.Morgan Cazenove said the midpoint of the guidance would lead to a 1.6 percent downgrade in the consensus revenue forecast, which stood at $4.82 billion.

They said a downgrade could leave the shares trading nearer 11 pounds than 12 pounds in the short term.

Berenberg, meanwhile, said: "Expectations were fairly low running into these results, in our view, and the results did little to change that."

Analysts had on average expected 2016 revenue of $4.69 billion and trading profit of $1.04 billion, according to a company-supplied consensus.

(Editing by Keith Weir and David Goodman)

By Paul Sandle

© Reuters 2017
Stocks mentioned in the article
ChangeLast1st jan.
CHANGE INC. 3.85% 8100 End-of-day quote.457.08%
LETS HOLDINGS GROUP CO., LTD. -1.52% 9.08 End-of-day quote.50.33%
NEXT PLC 2.96% 6746 Delayed Quote.-6.64%
SMITH & NEPHEW PLC 3.89% 1507.5 Delayed Quote.-20.82%
STRYKER CORPORATION -1.03% 231 Delayed Quote.11.17%
THE LEAD CO., INC. 22.92% 1609 End-of-day quote.312.56%
ZIMMER BIOMET HOLDINGS -2.03% 146.1 Delayed Quote.-0.37%
All news about SMITH & NEPHEW PLC
11/23SMITH & NEPHEW : SCOTUS To Decide Constitutionality Of PTAB Judge Appointments
11/20SMITH & NEPHEW : Investor presentation October - December 2020
11/20SMITH & NEPHEW : What Arthrex Could Mean For The PTAB Going Forward
11/18SMITH & NEPHEW : New data shows Smith+Nephew's NOVOSTITCH Meniscal Repair System..
11/13ARTHREX : Who Are You Calling Inferior?
11/06SMITH & NEPHEW : +Nephew adds patient selection and care-pathway optimization to..
10/31SMITH & NEPHEW PLC : Monthly statement on outstanding equity shares and voting r..
10/29SMITH & NEPHEW : +Nephew revenue lifted by recovery in elective surgery demand
10/29SMITH & NEPHEW : 3Q Underlying Revenue Improved After Virus Hit
10/29SMITH & NEPHEW : +Nephew Third Quarter 2020 Trading Report
More news
Financials (USD)
Sales 2020 4 694 M - -
Net income 2020 389 M - -
Net Debt 2020 1 633 M - -
P/E ratio 2020 35,4x
Yield 2020 1,92%
Capitalization 13 176 M 17 576 M -
EV / Sales 2020 3,15x
EV / Sales 2021 2,72x
Nbr of Employees 17 500
Free-Float 98,7%
Duration : Period :
Smith & Nephew Plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SMITH & NEPHEW PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 16
Average target price 21,58 $
Last Close Price 15,08 $
Spread / Highest target 77,9%
Spread / Average Target 43,2%
Spread / Lowest Target -11,6%
EPS Revisions
Roland D. Diggelmann Chief Executive Officer & Non-Executive Director
Roberto Quarta Chairman
Mark Gladwell President-Global Operations & Business Services
Anne-Francoise Nesmes Chief Financial Officer & Executive Director
Vasant Padmanabhan President-Research & Development
Sector and Competitors