It has been a bruising start to the day for Smith & Nephew, the medical equipment manufacturing company, after they published third quarter results. Headwinds from lower Chinese demand are pressuring the company’s performance and whilst revenues for the period grew by 4%, the full year performance was downgraded. Sales for FY24 are now expected to come in around 4.5% higher, down from previous forecasts of 5-6%, but the profit margin has been hot even harder. This is now expected to be around 0.5% for the full year against 18% in FY23 and although the dip is forecast to be temporary, investors have been quick to mark down the stock. Smith & Nephew shares are trading down almost 14% before 9am.
The FTSE-250 listed IT provider published a trading update this morning, including updated guidance for the full year to 31st March 2025. The macroeconomic environment continues to hamper sales and as a result, management expect revenues to come in moderately below current market consensus. Despite news of a share buyback – the details of which will be announced on less than two weeks’ time – the market has failed to warm to the news. The Kainos share price is down 15% in early trade.
The London-listed consumer packaged goods company and strategic partner of Coca Cola published Q3 numbers this morning which included upgraded guidance for the full year, with revenue now expected to increase by 13%, up from the previously stated 11%. The news comes against a backdrop which management acknowledge remains challenging at a macroeconomic level, whilst currency headwinds are also taking a toll on emerging market performance. The Coca Cola HBC share price started the day around 3% higher but gains had been roughly halved after an hour.
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