Smith & Nephew PLC (LSE:SN) has left itself with the mounting task of having to give investors something to cheer about after ringing the warning bell last time out.
Ahead of full-year figures on Tuesday, 25 February, AJ Bell analysts noted the medical equipment maker flagged it and chief executive Deepak Nath needed to reassure.
“Nath’s twelve-point turnaround plan is yet to galvanise financial and operational performance or the share price.”
“Both he and the company need to impress, especially with activist investor Cevian on their tail.”
Shares have dropped well over 40% since a pre-pandemic high, with a profit warning in October weighing most recently.
Low-to-mid single-digit percentage underlying sales growth was expected this time out as a result, with operating margin growth to 17.8% from 17.5% and broadly flat earnings.
Attention was largely set to be on its outlook, namely around US orthopaedic growth, Panmure Liberum analysts added.