Smith & Nephew jumps to one-year high as profit beats estimates
Updates shares in paragraph 1 and 2, adds details on U.S. performance in paragraph 7
Aug 1 (Reuters) -Smith & Nephew's SN.L shares surged nearly 11% to a one-year high onThursday after the British medical equipment maker's half-year profit beat market estimates, helped by increasing demand for itsorthopaedic products.
The company's sharesrose 10.8%to 1,244.5 pence, their highest since July 20, 2023.
Profit jumped 12.8% to $471 million for the half-year ended June 29. A company-provided consensus showed analysts, on average, expected a profit ofabout $462 million
Smith & Nephew also reiterated its annual forecast.
The company, which struggled to grow its margins in the last few years due to pandemic-led lockdowns that led to surgery delays and supply-related disruptions due to COVID as well as high raw material costs owing tothe Russia-Ukraine conflict, had undertaken strategic initiatives to turn around its business and expand on its product offerings.
Smith & Nephew, which makes orthopaedic implants, wound dressings and other surgical materials, has lost more than 40% of its stock value from an all-time high hit in February 2020.
"There is still more work to be done and we expect to see further progress in the second-halfof the year," Chief Executive Deepak Nath said in a statement.
Revenue from its orthopaedics segment rose 5.8% to $581 million in the second quarter, helped by strong growth in hip and knee implants outside the U.S., as well as from reconstruction procedures. The segment reportedrevenue of $567 million in the first quarter.
The Watford, UK-headquartered group, which has seen weakness in demand for its hip and knee implants in the U.S., said it expected this segment toimprove in the second half of the year.
Overall revenue for the half-year was up 4.3% at $2.83 billion.
Reporting by Radhika Anilkumar in Bengaluru; Editing by Sonia Cheema
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