Smiths share price outperforms after full-year results

Smiths Group’s (LON:SMIN) share price has advanced in London this Friday, with investors reacting positively to the group’s full-year results. The results follow comments by Goldman Sachs last month which argued that the medical devices and security scanner maker’s defensive profile is attractive given the uncertain economic backdrop.

As of 14:34 BST, Smiths’ share price had gained 1.43 percent to 1,664.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.18 percent higher at 7,369.72 points. The group’s shares have added more than four percent to their value over the past year, as compared with a flat Footie.

Smiths Group posts FY results

Smiths Group announced in a statement that its underlying revenue growth was three percent to £2.5 billion in the financial year ended July 31, while its operating profit came in four percent higher at £427 million. The company’s total profit for the year meanwhile came in seven percent higher at £385 million. The FTSE 100 company proposed final dividend of 31.80 pence per share, lifting its full-year payout to shareholders by three percent.

“FY2019 was a significant year in the evolution of Smiths,” Smiths’ chief executive Andy Reynolds Smith commented in the statement, adding that the company remained “on course to grow faster than our markets over the medium-term”.

The company also expects further progress in the FY2020, with year on year growth weighted towards the first half and resulting in a more balanced performance between both halves of the year.

Analysts on blue-chip company

The 13 analysts offering 12-month targets for Smiths’ share price for the Financial Times have a median target of 1,610.00p, with a high estimate of 1,850.00p and a low estimate of 1,450.00p. As of September 17, the consensus forecast amongst 17 polled investment analysts covering the FTSE 100 group advises investors to hold their position in the company.