Analyst Note
| Debbie S. Wang |Narrow-moat Smith & Nephew posted decent third-quarter trading results that largely fell within our expectations, and we’re leaving our fair value estimate unchanged. The company delivered quarterly 5% underlying revenue growth, thanks to strength in advanced wound care, as well as the sports medicine and arthroscopy segment. The orthopedic business offered more muted 2% growth in the quarter. As seen with the firm’s key orthopedic rivals, Smith & Nephew racked up robust growth in knees and hips in the U.S., while revenue growth outside the U.S. remained under pressure.