Skip to main content

Market Overview

Smith & Nephew Maintains Dividend For 2021 Despite Q4 Earnings Hit By COVID-19; Shares Drop

Share:
  • Medical device maker Smith & Nephew plc (NYSE: SNN) slips in the premarket after reporting a slump in revenues and profits. Full-year 2020 revenue fell 11.2% Y/Y to $4.6 billion, and operating profit dropped over 60% to $295 million.
  • COVID-19 related restrictions swamped other patient care areas, particularly the elective surgeries that require Smith & Nephew’s replacement prosthetic hips and knees.
  • For 2020, the trading profit of $683 million almost halved from $1.17 billion recorded for 2019.
  • Cash generated from operations reached $972 million in 2020, down from $1,370 million a year ago.
  • The company declared a full-year dividend of 37.5 cents per share, unchanged from 2019.
  • For 2021, the company expects the COVID-19 impact to continue into the first half of 2021. The timing of recovery remains unclear.
  • Smith & Nephew chief executive Roland Diggelmann said: “We start 2021 with three clear priorities: to return to top-line growth and recapture momentum; to drive further operational improvement; to continue to respond effectively to COVID-19.”
  • See the Q4 earnings presentation here.
  • Price Action: SNN stock dropped 2.93% at $42.68 in the premarket trading on the last check Thursday.
 

Related Articles (SNN)

View Comments and Join the Discussion!

Posted-In: Covid-19Earnings News Guidance Dividends Health Care General

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com