- Smith & Nephew‘s operating profit was $657 million, lower than the estimated $672.3 million.
- Trading profit exceeded expectations at $1.05 billion compared to the estimate of $1.03 billion.
- Revenue surpassed forecasts, reaching $5.81 billion against the expected $5.77 billion.
- The final dividend per share is 23.1 cents, contributing to a total annual dividend of 37.5 cents per share.
- Adjusted earnings per share (EPS) were 84.3 cents, slightly above the estimate of 83.1 cents.
- Pretax profit came in at $498 million, significantly below the predicted $693.8 million.
- Fourth quarter revenue was strong at $1.57 billion, beating the estimate of $1.53 billion.
- Orthopaedics revenue was $608 million, higher than the forecasted $600.7 million.
- Sports Medicine & ENT revenue totaled $494 million, surpassing the estimated $478.5 million.
- Advanced Wound Management revenue reached $469 million, exceeding the $450.5 million estimate.
- Comments from the company indicate a focus on strong revenue growth and trading profit margin improvements in 2025.
- Smith & Nephew plans to continue building on momentum and efficiency gains to drive margin expansion beyond 2025.
- Efforts in operating leverage and productivity improvements are expected to support margin expansion despite industry challenges.
- Analyst recommendations include 13 buy ratings, 8 hold ratings, and 1 sell rating for the company’s stock.
A look at Smith & Nephew Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Smith & Nephew, a company that develops and markets advanced medical devices, is looking at a positive long-term outlook. Based on the Smartkarma Smart Scores, the company’s momentum score is the highest at 4, indicating strong upward movement potential. This suggests that investors may find Smith & Nephew an attractive option for long-term growth. Additionally, the company’s value, dividend, and growth scores all sit at a moderate level of 3, reflecting steady performance in these areas. However, the resilience score is slightly lower at 2, indicating some vulnerability to external factors.
Overall, Smith & Nephew‘s Smart Scores paint a picture of a company with promising momentum and stable fundamentals. With a focus on orthopaedics, endoscopy, and advanced wound management, the company’s diversification across these healthcare segments could bode well for its future growth prospects in the medical devices industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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