Smith & Nephew SNATS (NYSE:SNN) Issues Quarterly Earnings Results, Misses Estimates By $0.46 EPS

Smith & Nephew SNATS (NYSE:SNN) announced its quarterly earnings data on Tuesday. The medical equipment provider reported $0.48 EPS for the quarter, missing analysts’ consensus estimates of $0.94 by ($0.46), FiscalAI reports. The company had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.64 billion.

Here are the key takeaways from Smith & Nephew SNATS’s conference call:

• Revenue growth fell short of expectations, with Q2 underlying growth of 1.6% and the full-year 2026 outlook reduced to around 4%, primarily due to weakness in U.S. Orthopaedics and Advanced Wound Bioactives.
• Despite the revenue shortfall, trading profit rose 9% excluding M&A to $566 million, with margin expanding 60 basis points to 18.3%. The company maintained its guidance for approximately $1.3 billion of 2026 trading profit, around $800 million of free cash flow, and ROIC above 10%.
• Sports Medicine and ENT remained a major growth engine, increasing 8.6% on broad-based demand for products including REGENETEN, Q-FIX KNOTLESS, Fast Seal, and ENT wands. CORI robotic placements also grew by double digits, alongside improving utilization and penetration.
• U.S. Orthopaedics remains the key operational weakness, particularly knees, where the company lacks a cementless offering across part of its installed base. Management expects improvement from LEGION MS and the LANDMARK Porous launch, while U.S. hip growth was temporarily slowed by Catalyst Stem instrument-set deployment delays.
• Efficiency savings significantly exceeded expectations, reaching about $133 million in the first half and prompting the company to raise its 2026 savings target from $150 million to $200 million. These savings, along with tariff refunds that broadly offset 2026 tariff costs, are helping protect profitability despite slower sales.

Smith & Nephew SNATS Stock Down 5.6%

Smith & Nephew SNATS stock traded down $1.79 during mid-day trading on Tuesday, reaching $30.36. The company had a trading volume of 1,649,734 shares, compared to its average volume of 1,184,938. The stock’s 50-day simple moving average is $30.45 and its 200-day simple moving average is $32.19. Smith & Nephew SNATS has a 1 year low of $28.56 and a 1 year high of $38.79. The company has a current ratio of 2.57, a quick ratio of 1.25 and a debt-to-equity ratio of 0.60.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on SNN. Kepler Capital Markets downgraded Smith & Nephew SNATS from a “buy” rating to a “hold” rating in a research note on Thursday, June 4th. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Smith & Nephew SNATS in a report on Monday, May 25th. Weiss Ratings lowered Smith & Nephew SNATS from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, June 11th. Canaccord Genuity Group reduced their target price on Smith & Nephew SNATS from $32.00 to $30.00 and set a “hold” rating for the company in a report on Monday, May 11th. Finally, Sanford C. Bernstein set a $31.85 target price on Smith & Nephew SNATS in a report on Monday, May 11th. One research analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Smith & Nephew SNATS presently has an average rating of “Hold” and a consensus target price of $30.93.

Institutional Investors Weigh In On Smith & Nephew SNATS

Institutional investors and hedge funds have recently modified their holdings of the company. NewEdge Advisors LLC increased its stake in Smith & Nephew SNATS by 18.7% in the 4th quarter. NewEdge Advisors LLC now owns 7,571 shares of the medical equipment provider’s stock valued at $248,000 after purchasing an additional 1,192 shares in the last quarter. XTX Topco Ltd grew its holdings in Smith & Nephew SNATS by 165.1% in the fourth quarter. XTX Topco Ltd now owns 49,063 shares of the medical equipment provider’s stock valued at $1,610,000 after purchasing an additional 30,553 shares during the last quarter. Voloridge Investment Management LLC acquired a new stake in Smith & Nephew SNATS in the fourth quarter valued at $330,000. OLD Mission Capital LLC purchased a new position in shares of Smith & Nephew SNATS in the fourth quarter valued at $7,438,000. Finally, Millennium Management LLC raised its stake in shares of Smith & Nephew SNATS by 413.7% during the 4th quarter. Millennium Management LLC now owns 337,623 shares of the medical equipment provider’s stock worth $11,077,000 after buying an additional 271,894 shares during the last quarter. Institutional investors and hedge funds own 25.64% of the company’s stock.

About Smith & Nephew SNATS

Smith & Nephew plc is a global medical technology company specializing in the design, development and manufacture of advanced surgical devices, orthopaedic reconstruction implants, trauma and extremities products, sports medicine solutions and wound care therapies. Founded in 1856 in Hull, United Kingdom, the company has grown through both organic innovation and strategic acquisitions to offer a broad portfolio that addresses patient needs across joint replacement, minimally invasive surgery and wound healing.

In its orthopaedics business, Smith & Nephew provides hip and knee replacement systems, modular joint revision implants and biologic solutions for bone repair.