Smith & Nephew (NYSE: SNN) reported earnings on Aug. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Smith & Nephew met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew significantly.

Gross margins increased, operating margins contracted, net margins grew.

Revenue details
Smith & Nephew reported revenue of $1.03 billion. The 14 analysts polled by S&P Capital IQ predicted a top line of $1.04 billion on the same basis. GAAP reported sales were 4.5% lower than the prior-year quarter's $1.08 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.90. The four earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS of $0.33 for Q2 were 94% higher than the prior-year quarter's $0.17 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 74.2%, 80 basis points better than the prior-year quarter. Operating margin was 20.4%, 60 basis points worse than the prior-year quarter. Net margin was 28.4%, 1,420 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $985.6 million. On the bottom line, the average EPS estimate is $0.82.

Next year's average estimate for revenue is $4.23 billion. The average EPS estimate is $3.85.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 119 members out of 129 rating the stock outperform, and 10 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Smith & Nephew a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smith & Nephew is hold, with an average price target of $52.28.