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Smith & Nephew plc (GB:SN)
LSE:SN
Earnings Data
Report Date
Jul 31, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
32.35Last Year’s EPS
29.25Same Quarter Last Year
Moderate Buy
Based on 10 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 25, 2025
|% Change Since: 5.69%
|Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment|Positive
The earnings call highlighted Smith & Nephew's strong performance in Q4 2024, driven by innovation and operational improvements. However, challenges in China and pricing pressures remain concerns. The company has a positive outlook for 2025, expecting growth and margin expansion.Company Guidance
During the call, Smith & Nephew's CEO, Deepak Nath, emphasized the financial improvements driven by the 12-Point Plan, highlighting a 60 basis points (bps) margin expansion and a 95% cash conversion rate in 2024, which exceeded their target. Operational and commercial enhancements, combined with innovation, contributed to an 8.3% underlying growth in Q4, despite a 280 bps headwind from China. The company maintained its 2025 outlook, anticipating around 5% revenue growth and significant trading margin expansion to 19-20%, supported by operating leverage and manufacturing cost optimizations. The call also underscored the company's consistent above-average growth over four years, with 80 bps of trading margin expansion since 2022, and a rise in ROIC to 7.4%, aiming to exceed the cost of capital in 2025. Additionally, Smith & Nephew achieved a free cash flow of over $0.5 billion in 2024, with inventory days reduced and restructuring costs down. The company expects further margin accretion in the subsequent years, driven by continued operational improvements and cost-saving initiatives.Strong Year-End Performance
Smith & Nephew delivered 8.3% underlying growth in Q4 2024, with strong volumes across most regions and 60 basis points of margin expansion for the year.
Innovation Driving Growth
60% of revenue growth in 2024 came from products launched in the last five years, with continued investment in innovation expected to support further growth.
Operational Improvements
The company has enhanced its organizational structure, reducing headcount by 9% and improving inventory management, resulting in 95% cash conversion.
Optimized Cost Base
Smith & Nephew expects gross cost savings of $325 to $375 million, with significant manufacturing and procurement savings contributing to margin expansion.
Positive Outlook for 2025
The company forecasts around 5% revenue growth and trading margin expansion to 19-20% in 2025, with continued improvements in ROIC expected.
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GB:SN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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GB:SN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 25, 2025 | 1026.59p | 1089.56p | +6.13% |
| Aug 01, 2024 | 1094.15p | 1168.20p | +6.77% |
| Feb 27, 2024 | 1077.16p | 1066.15p | -1.02% |
| Aug 03, 2023 | 1088.57p | 1062.57p | -2.39% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Smith & Nephew plc (GB:SN) report earnings?
Smith & Nephew plc (GB:SN) is schdueled to report earning on Jul 31, 2025, TBA Not Confirmed.
What is Smith & Nephew plc (GB:SN) earnings time?
Smith & Nephew plc (GB:SN) earnings time is at Jul 31, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Smith & Nephew plc stock?
The P/E ratio of Smith & Nephew is N/A.
What is GB:SN EPS forecast?
GB:SN EPS forecast for the fiscal quarter 2025 (Q2) is 32.35.
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