Medical-technology company Smith & Nephew has adjusted its guidance for the year after reporting better-than-expected revenue growth in its third quarter. The UK-based company posted revenue of $1.36 billion for the three months ending Sept. 30, surpassing the company-compiled consensus of $1.34 billion. This represents a slight increase from $1.25 billion in the third quarter of 2022.
The underlying growth for the period was also higher than expected, reaching 7.7% compared to the consensus forecast of 5.7%. As a result, Smith & Nephew now anticipates its full-year underlying revenue growth to fall within the higher end of its previously upgraded range of 6.0% to 7.0%.
Furthermore, the company's trading profit margin is projected to be around 17.5%, remaining unchanged from its previous estimate. Consensus forecasts indicate a trading profit margin of 17.5% with an underlying growth rate of 6.4% for the year.
In terms of quarterly performance, Smith & Nephew expects Advanced Wound Management to experience stronger growth in the fourth quarter due to improvements in Advanced Wound Bioactives. The Orthopaedics segment is also expected to continue its positive momentum, while Sports Medicine may face slower growth due to challenges in China.
In addition to its financial results, Smith & Nephew announced that John Rogers, the former CFO at WPP, will be joining the company as its incoming CFO. Rogers will replace Anne-Francoise Nesmes, who will step down from the role in the second quarter of 2024. Rogers will assume the position of CFO-designate on Dec. 1 and join the board in the first quarter.
This positive news reflects Smith & Nephew's strong performance and strategic leadership as it continues to navigate the competitive medical-technology industry.