Smith+Nephew (LON:SN) today reported Q2 results that missed the consensus forecast of analysts as the COVID-19 pandemic drove revenue down nearly 30%, to $901 million.
The British orthopedics, sports medicine and wound care products company, however, also reported that it saw elective procedures resume across the U.S. and much of Europe by the time the quarter ended on June 27 — a positive sign for the rest of the year.
Trading profit for the first half of the year — the company’s preferred metric that excludes one-time items — was $172 million, down 68% from the first half of 2019.
Analyst predictions compiled by the company on average expected a trading profit of $225 million for the first half of the year, with the company bringing in $905 million in revenue in Q2.
Smith+Nephew CEO Roland Diggelmann said the company has sought to emerge from the pandemic crisis as strong as possible, maintaining its R&D spend, launching new products, protecting jobs and managing its costs base. “There remain many uncertainties as countries continue to battle COVID-19, but with our unique portfolio, proven strategy, strong balance sheet and motivated workforce we are ready to take advantage as markets recover.”
The company touted strong performance for recently launched products, including the OR3O dual mobility hip system and the Evos small fragment plating system.
Smith+Nephew also recently launched its next-gen Cori handheld, orthopedic, robotic-assisted surgical system for knee surgeries. The Cori system is S+N’s latest salvo against Stryker (NYSE:SYK), which has enjoyed success with its Mako robotic systems in the orthopedic surgery space.
Due to the uncertainty around COVID-19, Smith+Nephew is not providing updated 2020 guidance.
Investors reacted by sending SNN shares up slightly in trading in London today; the stock is up slightly on the NYSE this morning. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — is also up slightly today.
