On Feb. 8, Smith & Nephew (NYSE:SNN), a medical technology company, released earnings for the fourth quarter ended Dec. 31.
- Sales increased by 15.1%, which can be attributed to overall healthy performance in all segments and successful new products.
- Long-term debt decreased by 93%.
- Free cash flow increased to $93 million, led by a 160% rise in cash from operations and a decline in capital spending.
- The company announced a share buyback program of up to $1.5 billion over the next two years.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$771 |
$670 |
15.1% |
|
Net Profit |
$121 |
$80 |
51.3% |
|
EPS |
$0.13 |
$0.08 |
62.5% |
|
Diluted Shares |
944 |
943 |
0.1% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
71.3% |
73.1% |
(1.8) |
|
Operating Margin |
20.4% |
16.9% |
3.5 |
|
Net Margin |
15.7% |
11.9% |
3.8 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$346 |
$151 |
129.1% |
|
Accounts Rec. |
$680 |
$620 |
9.7% |
|
Inventory |
$619 |
$557 |
11.1% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$419 |
$452 |
(7.3%) |
|
Long-Term Debt |
$15 |
$211 |
(92.9%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$130 |
$50 |
160.0% |
|
Capital Expenditures |
$37 |
$47 |
(21.3%) |
|
Free Cash Flow |
$93 |
$3 |
3000.0% |
Find out why Fools always follow the money.
Related companies:
- St. Jude Medical (NYSE:STJ)
- Biomet (NASDAQ:BMET)
- C.R. Bard (NYSE:BCR)
- Varian Medical Systems (NYSE:VAR)
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