Smith+Nephew (NYSE:SNN) shares took a hit today as the company revealed in its second-quarter earnings that it lowered its 2022 forecast.
SNN shares were down more than 11% to $25.85 apiece in morning trading today on the New York Stock Exchange. MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up slightly.
For the six-month period ended June 30 reported by the London-based company, Smith+Nephew posted profits of $242 million, or 20¢ per share, on sales of $2.6 billion, for a 1.3% bottom-line gain as sales totals remained effectively the same.
Adjusted to exclude one-time items, earnings per share were 38¢.
Revenues for the second quarter — the only metric reported for the three-month period by Smith+Nephew — came in at $1.3 billion, representing a year-over-year sales decline of 3.1%.
“Our focus is on delivering our transformational strategy,” Smith+Nephew CEO Deepak Nath said in a news release. “We will drive operational benefits in Orthopaedics, as soon as this year, and build on our strong positions in Advanced Wound Management and Sports Medicine & ENT. I am confident in our ability to transform Smith+Nephew into a structurally higher-growth business delivering greater value for all our stakeholders.”
Smith+Nephew’s revenue guidance remains unchanged at projected growth between 4% and 5% for the full year. However, the company set its expectations for its trading margin at 17.5%, reflecting the prolonged impact of the inflationary environment and continued external supply challenges. That number is down from the previously projected 18.5%.