Smith & Nephew tops Q2 estimates

Smith & Nephew (NYSE:SNN) beat the consensus sales forecast with its second-quarter results with emerging markets gaining at a double-digit clip, sending share prices up in London and New York today.

The British orthopedics and wound care company posted profits of $324 million, or 37¢ per share, on sales of $2.34 billion for the three months ended July 1, amounting to profit growth of 34.4% on sales growth of 0.3%. Adjusted to exclude one-time items, earnings per share were 43¢. Analysts were looking for sales of $2.31 billion.

“I am pleased with the first half of 2017, where our focus on execution is delivering improvements in performance at the top and bottom line. In particular, we have returned the emerging markets to double-digit growth and driven strong returns from disruptive innovations in areas such as knee implants and negative-pressure wound therapy,” CEO Olivier Bohuon said in prepared remarks. “We are taking good momentum into the second half and I am confident that we are on track to deliver our full-year revenue and trading margin guidance, which is unchanged. We continue to expect underlying revenue growth of 3% to 4% and a 20 bps to 70 bps improvement in trading profit margin for the full year.”

Sales in emerging markets gained 13.3% to reach $204 million compared with Q2 2016, the company said.

The news sent SNN shares up 2.4% to $35.40 apiece in pre-market activity in New York this morning; SN shares had gained 1.9% to hit £13.26 in mid-afternoon trading in London.

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