Shares in Smith & Nephew (NYSE:SNN) are rising today after the medical device maker posted fourth quarter and full year 2018 earnings, and guidance for the coming year, mostly in line with analyst’s expectations.
For its fourth quarter, the British medtech company reported sales growth of approximately 1.3% to $1.29 billion, just behind analyst’s expectations of $1.3 billion.
For the full year, sales grew 3% to approximately $4.9 billion, while operating and trading profit shrunk 7.6% from $934 million in 2017 to $863 million in 2018.
Earnings per share for the year also shrunk by approximately 13.4%, falling from 87.8¢ in 2017 to 76¢ in 2018.
Adjusted earnings were reported at approximately $1.01, just ahead of analysts expectations of 95¢
Underlying revenue for the year grew 2%, Smith & Nephew said, with a trading profit margin of 22.9%, which was in line with expectations.
For the upcoming year, Smith & Nephew said they expect to see revenue growth of between 2.5% and 3.5%, with trading profit margin expected to be between 22.8% and 23.2%, mostly in line with analysts expectations.
“We accelerated performance across 2018, with 3% underlying revenue growth in both the third and fourth quarters and a 7% uplift in full year trading profit. We start 2019 with a strengthened organization and a new growth-oriented operating model,” CEO Namal Nawana said in a press release.
Last month, Smith & Nephew said that it completed its $50 million acquisition of Ceterix Orthopaedics and its NovoStitch Pro meniscal repair system.
