Shares of Smith & Nephew Plc (SN,SNN) were losing around 10 percent in the morning trading in London after the medical technology company reported Thursday weak revenues in its second quarter, and lower profit in its first half. Further, the company maintained fiscal 2022 sales outlook.
For the first half, profit before taxation declined to $204 million from last year’s $223 million. Basic earnings per share were 20.2 cents or 40.4 cents per ADS, compared to last year’s 23.4 cents per share.
Adjusted earnings per share were 38.1 cents or 76.2 cents per ADS, compared to prior year’s 38.8 cents last year.
Revenue for the first-half was $2.60 billion, same as last year, while it grew 3.5 percent on an underlying basis.
In the second quarter, revenue fell 3.1 percent to $1.29 billion from prior year’s $1.34 billion, while it grew 1.2 percent on an underlying basis.
Further, the company announced interim dividend for the first half of 14.4 cents per share or 28.8 cents per ADS, in line with last year.
Looking ahead for fiscal 2022, the company continues to expect underlying revenue growth at 4 percent to 5 percent.
On a reported basis, revenue is expected to be down 0.2 percent to up 0.8 percent. The company expects revenue growth to be stronger in the second half than the first half of 2022.
Trading profit margin is now expected to be around 17.5 percent, reflecting prolonged impact of the inflationary environment and continued external supply challenges.
In February, the company expected an expansion in trading profit margin of around 50bps for the full year.
In London, Smith & Nephew shares are trading at 1,082 pence, down 10.17 percent.
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