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Smith & Nephew: cuts full-year guidance on Q3 revenue miss

Smith & Nephew has lowered its full-year guidance as revenue growth falls short of expectations.
Smith & Nephew - on track to meet full year guidance

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Smith & Nephew’s underlying revenue grew 4.0% to $1.4bn in the third quarter. Growth in all three of its business units (Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management) were below market expectations. This comes as volume purchasing pressures from China continue to weigh on performance.

As a result, full-year underlying revenue guidance has been lowered to 4.5% growth (previously 5-6%).

Full-year trading profit margin (underlying EBITA) guidance has also been lowered from at least 18%, to between 17.5-18% driven by slower revenue growth. The 2025 trading profit margin target has also been cut to 19-20%, down from around 20% previously.

The shares fell 13.9% in early trading.

Our view

HL view to follow.

Smith & Nephew key facts

All ratios are sourced from Refinitiv, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.

This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment.No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.
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Written by
Aarin Chiekrie
Aarin Chiekrie
Equity Analyst

Aarin is a member of the Equity Research team. Alongside our other analysts, he provides regular research and analysis on individual companies and wider sectors. Having a keen interest in global economics, he knows how macro-events can impact individual companies.

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Article history
Published: 31st October 2024