Smith+Nephew Lowers Guidance Amid Weak US Orthopaedics Demand

Smith+Nephew lowered its full-year revenue growth guidance to approximately 3%, down from 4%, following weaker-than-expected demand in its U.S. Hips and Knees orthopaedics business. The medical device company also reduced its full-year trading profit growth forecast from 8% to around 4%, with expected trading profit falling to $1.25 billion from $1.3 billion.

Third-quarter revenue rose 3.4% to $1.55 billion, missing analyst expectations of 3.7%. While the company reported growth in Advanced Wound Management and Sports Medicine & ENT, the orthopaedics slump offset these gains. CEO Deepak Nath stated that the revised guidance reflects slower growth in U.S. Orthopaedics, which he expects to persist through the fourth quarter.

The company confirmed that discussions regarding a potential combination of its orthopaedics business with the DePuy Synthes unit of Johnson & Johnson have ended. Smith+Nephew is now exploring other strategic options for the division while maintaining its $500 million share buyback program.