Smith & Nephew
The 10-second takeaway
For the quarter ended March 31 (Q1), Smith & Nephew met expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue grew slightly and GAAP earnings per share increased.
Gross margins increased, operating margins were steady, net margins grew.
Smith & Nephew reported revenue of $1.08 billion. The 10 analysts polled by S&P Capital IQ foresaw revenue of $1.08 billion on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $1.06 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 $0.18. The four earnings estimates compiled by S&P Capital IQ averaged $0.96 per share. GAAP EPS of $0.18 for Q1 were 5.9% 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.
For the quarter, gross margin was 74.9%, 110 basis points better than the prior-year quarter. Operating margin was 21.9%, about the same as the prior-year quarter. Net margin was 14.9%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.08 billion. On the bottom line, the average EPS estimate is $0.93.
Next year's average estimate for revenue is $4.31 billion. The average EPS estimate is $3.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 117 members out of 127 rating the stock outperform, and 10 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $51.60.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Smith & Nephew. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.