Shares in Smith & Nephew (LON:SN) have jumped in London in today’s session, as the artificial hips and knees maker delivered a rise revenue for the third quarter of the year. The group further reiterated its full-year guidance.
As of 14:38 GMT, Smith & Nephew’s share price had added 6.28 percent to 1,353.50p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing at 7,128.22 points, flat in percentage terms. The group’s shares have lost about two percent of their value over the past year, as compare with about a 4.8-percent drop in the Footsie.
S&N update on performance
Smith & Nephew announced in a statement today that its third-quarter revenue had come in at $1.17 billion, up two percent on a reported, and three percent on an underlying basis. The group benefited from four-percent growth in the US, and a 10-percent rise in Emerging Markets.
“Improved underlying revenue growth in the third quarter was led by growth in the US and Emerging Markets,” the group’s chief executive Namal Nawana commented in the statement, adding that the artificial hips and knees maker was on track to deliver its full-year guidance.
Analysts weigh in on update
“Both Hips & Knee growth was 4% underlying, in line with the acceleration management expected but ahead of cons in our view,” analysts at UBS commented in a note to clients, as quoted by Proactive Investors, adding, however, that “weakness in Europe and Wound Bioactives (-7%) means that management now guides to the bottom end of the previous range of 2-3% underlying revenue growth”.
The broker reaffirmed the FTSE 100 group as a ‘neutral,’ with a price target of 1,340p on the shares.