Smith & Nephew
The 10-second takeaway
For the quarter ended March 30 (Q1), Smith & Nephew met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share dropped. GAAP earnings per share dropped.
Gross margins grew, operating margins dropped, net margins contracted.
Smith & Nephew logged revenue of $1.08 billion. The six analysts polled by S&P Capital IQ predicted sales of $1.07 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.92. The four earnings estimates compiled by S&P Capital IQ anticipated $0.95 per share. Non-GAAP EPS of $0.92 for Q1 were 2.1% lower than the prior-year quarter's $0.94 per share. GAAP EPS of $0.16 for Q1 were 11% lower than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.0%, 10 basis points better than the prior-year quarter. Operating margin was 19.3%, 260 basis points worse than the prior-year quarter. Net margin was 13.3%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.09 billion. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $4.39 billion. The average EPS estimate is $3.78.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 112 members out of 122 rating the stock outperform, and 10 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Smith & Nephew a green thumbs-up, and three 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 $57.56.
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