Smith & Nephew Stock Is Trading Lower Despite Posting Surge In Q2 Revenues, Profit

Smith & Nephew Plc SNN revenues soared in Q2 as COVID-19 restrictions eased and levels of elective surgery returned towards normal in many markets.
The Company reported revenues of $1.3 billion, up 48.2%, with underlying growth of 40.3%.
Compared to Q2 2019, Q2 2021 revenue was down -1.0% on an underlying basis, primarily due to the Orthopedics unit that slipped 6.2%.
All three franchises delivered strong revenue growth, with Orthopedics up 43.4% (53.0% reported), Sports Medicine & ENT up 50.9% (58.5% reported) and Advanced Wound Management up 27.2% (33.5% reported).
SNN swung to a pretax profit for the first half of the year as revenue rose. It posted a profit of $223 million compared with a pretax loss of $34 million a year ago. First-half trading profit rose to $459 million from $172 million the year before.
Outlook: Smith & Nephew said it was on track to meet its full-year guidance of underlying revenue growth between 10%-13%, as it has started to re-capture its pre-covid momentum, assuming that the pandemic does not constrain surgery volumes in the second half of 2021.
The Company expects a trading profit margin of 18.0% to 19.0%.
Price Action: SNN shares are down 7.39% at $40.56 during the premarket session on the last check Thursday.

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