Smith & Nephew expects Q1 revenue to be down 8% amid coronavirus

Smith & Nephew (NYSE:SNN) announced today that it is withdrawing its 2020 full-year financial guidance and projecting a sizeable decline in first-quarter revenue growth as a result of the COVID-19 pandemic.

The London-based medtech giant’s guidance, issued on Feb. 20, assumed a normalization of the coronavirus outbreak early in the second quarter. However, given the rapid expansion of the virus beyond its origin in China, Smith & Nephew determined that its projection of underlying 2020 revenue growth between 3.5% and 4.5% is no longer accurate.

Smith & Nephew said it is too early to determine the overall impact of COVID-19 on the company’s business, and it can’t predict how long the situation will last or the pace of normalization that follows. As a result, it won’t update the year’s guidance until things become clearer.

The company said its first-quarter results will still be reported on May 6, with a projected revenue decline of -8%. It also anticipates that second-quarter revenue and first-half trading margin will take a hit compared to the previous year’s results.

Elective procedures have restarted in China but remain below pre-outbreak levels, the orthopedic and wound care treatment developer said in a news release. Plus, in the U.S. and Europe, various policies implemented have stopped all but the most urgent surgical procedures, limiting the company’s ability to do business.

Last month, Smith & Nephew froze all but the most crucial new hires, slowed some planned capital expenditure and initiated other actions to save money in areas including travel, events, advertising, promotion and consultancy in an effort to offset the financial impact of the virus.

By | MassDevice

Image Credit: Smith & Nephew


About Peter Coffaro 510 Articles
Peter Coffaro is a growth-driven and strategic executive with over 25 years of progressive management success in the medical device industry. With a proven track record and recognized expertise, Peter has established himself as one of the top influencers in medical sales, as acknowledged by prestigious publications such as the World Journal of Orthopedics, Exponential Healthtech, and Throughout his career, Peter has accumulated 10 years of combined sales management experience, excelling in various roles including Director, General Manager, Distributor, and Vice President. He has worked for industry-leading orthopedic companies such as Zimmer, DePuy, and Stryker, solidifying his deep knowledge and network within the field. Peter’s passion for innovation and emerging technologies led him to found OrthoFeed, an award-winning blog covering digital orthopedic news and emerging medical technologies. Through this platform, he stays at the forefront of the industry and contributes to the dissemination of valuable insights. Peter is a three-time Hall of Fame award winner at Johnson and Johnson, demonstrating his exceptional contributions and impact on the organization. His expertise extends to areas such as organizational development, business development, sales management, digital marketing, and professional education. Peter earned a B.S. degree in Biology and Chemistry from Northern Illinois University, further complementing his comprehensive understanding of the medical field. With his wealth of experience, strategic mindset, and dedication to advancing healthcare, Peter Coffaro is a valuable asset and leader in the medical device industry.

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