Shares in Smith & Nephew (LON:SN) have climbed higher in London this morning as the blue-chip group revealed that its emerging markets had returned to growth in the second quarter of the year following a difficult first quarter. The group further reaffirmed its full-year guidance.
As of 10:26 BST, Smith & Nephew’s share price had added 3.79 percent to 1,371.00p, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.07 percent lower at 7,653.03 points. The group’s shares have added more than five percent to their value over the past year, as compared with a near three-percent gain in the Footsie.
Smith & Nephew posts results
Smith & Nephew announced in a statement this morning that its second-quarter reported revenue had climbed four percent to $1.25 billion, including a two-percent currency tailwind, with underlying growth coming in at two percent. The company said that its established markets had returned to growth, while emerging markets had climbed by six percent, with double-digit growth in China helping offset by lower level of Middle East tenders.
Today’s update marks a boost for the company which lowered its full-year revenue outlook in May, pressured by its established markets business.
Smith & Nephew noted today that it continues to expect underlying revenue growth in the two to three percent range, with a trading profit margin at or above that achieved last year.
Analysts on blue-chip group
Numis Securities, which sees Smith & Nephew as an ‘add,’ boosted its price target on the shares from 1,350p to 1,480p today. According to MarketBeat, the artificial hips and knees maker currently has a consensus ‘hold’ rating and an average price target of 1,402.23p.