Smith & Nephew Q1 revenue up 5%, but company is cautious on outlook: 5 things to know

Spinal Tech

Smith & Nephew reported a 5 percent increase in first quarter revenue for 2018.

 

Here are five things to know.

1. First quarter revenue hit nearly $1.2 billion, up 5 percent over the same period last year. The company's sports medicine revenue grew 13 percent to $170 million; knee implants revenue was up 6 percent to $259 million; and hip implants revenue grew 2 percent to $155 million.

2. U.S. revenue dropped 2 percent to $545 million while other established markets grew 9 percent to $446 million. The emerging markets revenue jumped 15 percent to $205 million.

3. Smith & Nephew's trauma and extremities revenue dropped 2 percent, but the company expects performance improvement in the second quarter after rolling out the Evos Small plating system.

4. Knee sales were driven by demand for the Journey II Total Knee System, Legion Revision Knee System and Anthem Knee System for the emerging markets.

5. First quarter results have made Smith & Nephew more cautions on company outlook, now expecting underlying revenue growth to hit 2 percent to 3 percent, assuming volumes return to normal levels for the rest of the year. The company also expects the 2018 tax rate on trading results to be in the 20 percent to 21 percent range.

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