Smith & Nephew Misses Where it Counts
Smith & Nephew (NYS: SNN) reported earnings on Nov. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Smith & Nephew met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share stayed the same.
Margins grew across the board.
Smith & Nephew reported revenue of $952.0 million. The 12 analysts polled by S&P Capital IQ expected revenue of $963.1 million on the same basis. GAAP reported sales were 7.8% lower than the prior-year quarter's $1.03 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 $0.15. The four earnings estimates compiled by S&P Capital IQ predicted $0.83 per share. GAAP EPS of $0.15 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 74.4%, 160 basis points better than the prior-year quarter. Operating margin was 19.6%, 110 basis points better than the prior-year quarter. Net margin was 14.1%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.09 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $4.19 billion. The average EPS estimate is $3.30.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 119 members out of 129 rating the stock outperform, and 10 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 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 $53.38.
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The article Smith & Nephew Misses Where it Counts originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
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