Shares in Smith & Nephew PLC (LSE:SN) surged by 4.2% as the company projected sales growth to hit the upper end of its guidance following a robust third quarter, despite a slight tempering of margin growth expectations.
The medical equipment manufacturer reported a 7.7% increase in third-quarter revenues, amounting to US$1.36 billion.
This growth was driven by strong performances in the Orthopaedics and Sports Medicine and Ear, Nose and Throat divisions, which were up 8.3% and 11.1% respectively.
The company now anticipates full-year underlying revenues to be "towards the higher end" of the 6-7% growth range, an upgrade from the previous 5-6% forecast at the half-year mark.
However, trading profit margins are expected to hover "around 17.5%", a slight dip from the initial "at least 17.5%" guidance, mainly due to challenges in China.
In early trade, stock in the med-tech company was changing hands for 962.4p, up 39p.