Smith & Nephew Earnings: Weak Orthopedics Growth Drags Down Quarterly Results
Smith & Nephew reported third-quarter underlying revenue growth of 3%, with outsize contribution from sports medicine joint repair that rose 11% year over year.
Smith & Nephew PLC SN.
Bulls Say, Bears Say
Bulls
Smith & Nephew participates in the fast-growing sports medicine arena, thanks to its extensive arthroscopy portfolio.
Bears
Smith & Nephew's attempted shift to the lower-cost Syncera distribution model in the US was disappointing, which leaves the firm in a shaky competitive position for large-joint replacement in that market.
Trading Information
- Previous Close Price
- GBX1,138.50
- Day Range
- GBX1,140.00–1,163.00
- 52-Week Range
- GBX980.40–1,396.50
- Bid/Ask
- GBX0.00 / GBX1,245.00
- Shares Outstanding
- 837.03M
- Market Cap
- GBX966.77B
- Volume/Avg
- 3M / 3M
Key Statistics
- Price/Earnings (Normalized)
- 15.79
- Price/Sales
- 2.09
- Dividend Yield (Trailing)
- 2.59%
- Dividend Yield (Forward)
- 2.59%
- Dividend Payment Schedule
- May, Nov
- Total Yield
- 7.31%
Company Profile
Smith & Nephew designs, manufactures, and markets orthopedic devices, sports medicine and arthroscopic technologies, and wound care solutions. Roughly 40% of the UK-based firm's revenue comes from orthopedic products, and another 31% is sports medicine and ENT. The remaining 29% of revenue is from the advanced wound therapy segment. Over half of Smith & Nephew's total revenue comes from the US, just over 30% is from other developed markets, and emerging markets account for the remainder.
- Sector
- Healthcare
- Industry
- Medical Devices
- Stock Style Box
- Mid Core
- Total Number of Employees
- 17,000
- Website
- https://www.smith-nephew.com
Competitors
Valuation
Metric | SN. | ZBH | SYK |
|---|---|---|---|
Price/Earnings (Normalized) | 15.79 | 16.34 | 22.71 |
Price/Book Value | 2.46 | 1.60 | 5.26 |
Price/Sales | 2.09 | 2.44 | 4.76 |
Price/Cash Flow | 10.73 | 11.07 | 23.30 |
Price/Earnings
SN.
ZBH
SYK
Financial Strength
Metric | SN. | ZBH | SYK |
|---|---|---|---|
Quick Ratio | 1.11 | 0.63 | 1.07 |
Current Ratio | 2.14 | 1.46 | 2.18 |
Interest Coverage | 5.42 | 4.07 | 9.73 |
Quick Ratio
SN.
ZBH
SYK
Profitability
Metric | SN. | ZBH | SYK |
|---|---|---|---|
Return on Assets (Normalized) | 8.51% | 7.14% | 11.66% |
Return on Equity (Normalized) | 17.09% | 13.01% | 24.04% |
Return on Invested Capital (Normalized) | 11.66% | 9.36% | 15.46% |
Return on Assets
SN.
ZBH
SYK
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United States