Shares in Smith & Nephew (LON:SN) have fallen deep into the red in London this morning, as the artificial hips and knees maker lowered its full-year revenue outlook. The move came after the company delivered ‘mixed performance’ during the first quarter of the year.
As of 10:17 BST, Smith & Nephew’s share price had given up 5.71 percent to 1,320.50p, pressuring the benchmark FTSE 100 index which currently stands 0.08 percent higher at 7,549.16 points. The group’s shares have added a little over three percent to their value over the past year, as compared with about a 4.4-percent gain in the Footsie.
Smith & Nephew announced in a statement this morning that its first-quarter revenue had come in at $1.2 billion, five percent up on a reported basis and flat on an underlying basis. The group was pressured by its Established Markets business which was held back by some softer market conditions and weaker performance in Advanced Wound Bioactives, with strong Emerging Markets helping offset the weaker performance.
The group noted that the weaker first quarter had impacted its full-year guidance and underlying revenue growth was now expected to be in the range of two-three percent, with a trading profit margin at or above that achieved in 2017.
“Our businesses delivered a mixed performance in the first quarter,” the group’s outgoing chief executive Olivier Bohuon commented in the statement. Earlier this year, Smith & Nephew appointed Namal Nawana, a former Alere executive, to replace Bohuon who will step down this year.
Analysts on S&N
Jefferies reiterated its ‘buy’ rating on the artificial hips & knees maker today, valuing the shares at 1,515p. According to MarketBeat, Smith & Nephew currently has a consensus ‘hold’ rating and an average price target of 1,358.05p.