Smith & Nephew share price jumps as quarterly sales rise

on Oct 30, 2014
Updated: Apr 9, 2020
Listen

iNVEZZ.com, Thursday, October 30: Shares in Smith & Nephew Plc (LON:SN) have jumped more than two percent this afternoon after the London-listed company reported a rise in third-quarter sales and trading profit.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

As of 13:26 GMT, Smith & Nephew’s share price had gained 2.55 percent to 1,044.00p, outperforming the benchmark FTSE 100 index which currently stands 0.55 percent lower at 6,418.68 points.
*h*Third quarter results*h*
Smith & Nephew announced in a statement today that its third-quarter revenue had climbed three percent on a reported basis to $1.15 billion (£718 million) as compared with the prior-year quarter. On an underlying basis, revenue was 12 percent up year-on-year. Trading profit rose three percent on a reported basis to $246 million, while the group’s adjusted earnings per ordinary share climbed 14 percent to 19.5 cents. Reuters reported today that analysts had been expecting trading profit of $247 million on revenue of $1.15 billion, resulting in earnings per share of 19.0 cents, according to a company-supplied consensus of 19 brokers.

The FTSE 100 company reported that its Sports Medicine and Trauma & Extremities units had performed well, benefitting from recent product launches and investment in the US sales force, with the result offsetting a weaker performance at Smith & Nephew’s Advanced Wound Management business.
Commenting on the results, chief executive Olivier Bohuon said: “We are pleased with our momentum, enhanced by group optimisation, tax improvement and the acquisition of ArthroCare”.

“We are delivering on our strategy to rebalance Smith & Nephew by strengthening our higher growth platforms, which currently represent more than half the business, up from just 35% three years ago,” Bohuon added.
Today’s results come after in August, the FTSE 100 company revealed that its trading profit had surged six percent in the second quarter. (Smith & Nephew share price rises on upbeat Q2 statement – https://invezz.com/news/equities/12379-smith-and-nephew-share-price-rises-on-upbeat-q2-statement)

*h*Analysts on Smith & Nephew*h*
As of October 25, the consensus forecast amongst 42 polled investment analysts covering Smith & Nephew for the Financial Times has it that the artificial hips and knees maker will outperform the market.
Analyst Ratings Network reports that the company currently has a consensus ‘hold’ rating and an average price target of 1,065.44p.
*h*As of 14:02 GMT, buy Smith & Nephew shares at 1041.00p.*h*
*h*As of 14:02 GMT, sell Smith & Nephew shares at 1039.00p.*h*

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Health & pharma Stock Market