Smith & Nephew PLC (LON:SN.) said its full-year outlook would be at the lower end of its guidance range after third quarter revenue missed market forecasts as natural disasters in the Americas delayed some procedures.
The medical equipment maker reported a 3% increase in revenue to US$1.15bn in the three months to September 30, missing analysts’ expectations of between US$ $1.139 and US$1.184bn.
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The US$350mln sale of its gynaecology business to Medtronic in August 2016 reduced reported revenue by 1%, offset by a 1% foreign exchange tailwind.
Chief executive, Olivier Bohuon, who is stepping down by the end of 2018, said revenue growth was in line with expectations despite the impact of a series of hurricanes in the US on operations.
“Of particular note is the sustained nature of the market-beating growth from our knee implants franchise and the strong emerging markets recovery across the year,” he said.
Bohoun added that he would review the company’s cost base to simplify and improve its operating model with an action plan to be announced at the full year results in February 2018.
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For the full year, the group expects underlying revenue growth and profit margin improvements to be at the lower end of its guided range of 3-4% and 20-70 basis points, respectively.
"Looking ahead, our focus on accelerating the top-line is unchanged and we are also starting the next stage in our continuing drive to improve efficiency across the group,” Bohoun said.