Smith & Nephew
The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Smith & Nephew met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share stayed the same.
Margins grew across the board.
Smith & Nephew reported revenue of $952.0 million. The 12 analysts polled by S&P Capital IQ expected revenue of $963.1 million on the same basis. GAAP reported sales were 7.8% lower than the prior-year quarter's $1.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The four earnings estimates compiled by S&P Capital IQ predicted $0.83 per share. GAAP EPS of $0.15 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 74.4%, 160 basis points better than the prior-year quarter. Operating margin was 19.6%, 110 basis points better than the prior-year quarter. Net margin was 14.1%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.09 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $4.19 billion. The average EPS estimate is $3.30.
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 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 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 $53.38.
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