Equity Profile

SNN

Smith & Nephew plc

Health CareHealth Care Equipment$13.0B

Feb6Thu

Pre-Earnings Brief

UpcomingQ3-2019Pre-Market9:00 AM EST

Company Snapshot

Smith & Nephew plc (SNN) is a global medical technology company that specializes in advanced wound management, surgical devices, and orthopedic reconstruction. As a key player in the healthcare equipment sector, it plays a vital role in improving patient outcomes and enhancing surgical procedures.

Key Metrics to Watch

Revenue Growth

Investors will be looking for signs of demand in Smith & Nephew's product lines amid ongoing healthcare spending trends.

N/A

Earnings Per Share (EPS)

EPS is a crucial indicator of the company's profitability and will help gauge operational efficiency.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

SNN Q3-2019 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

25%

Avg EPS Surprise

+19.92%

Avg Stock Reaction

+0.05%

Last Quarter Recap

In the last quarter, Smith & Nephew reported an EPS of $0.92, which was in line with expectations, and the stock saw a modest increase of 1.23% the following day. The company continues to focus on innovation and expanding its product offerings.

Management Promises & Guidance

Commitment to enhancing product development in advanced wound management.
Focus on expanding market presence in emerging markets.
Continued investment in research and development to drive future growth.

Expectations

Wall Street Expectations

Overall, the market is cautiously optimistic about Smith & Nephew's upcoming earnings, with expectations for steady growth in key product areas. However, there are concerns about potential headwinds from increased competition and pricing pressures.

Bull Case

If the company demonstrates strong revenue growth and effective cost management, it could signal a robust recovery and increased market confidence.

Bear Case

On the other hand, if earnings fall short or guidance is weak, it could raise doubts about the company's growth trajectory and lead to a negative market reaction.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected revenue growth in the advanced wound management segment?

This segment is crucial for the company's overall performance, and any significant growth or decline will heavily influence market sentiment.

How does management plan to address competitive pressures in the orthopedic reconstruction market?

With increasing competition, clarity on strategic initiatives will be vital for investor confidence.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for Smith & Nephew's advanced wound management products to capture market share, especially in emerging markets.

Supporting Evidence

Options are pricing a 32.33% move, indicating expectations of volatility that may not materialize.

Historical data shows the stock has only moved more than 5% in one of the last eight quarters.

The company's focus on innovation could lead to better-than-expected performance despite competitive pressures.

Key Risk

If revenue growth in the advanced wound management segment exceeds 5%, it could challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around the company's ability to sustain growth in a competitive landscape.

Bull Confirmed If

A revenue growth rate of over 5% in the advanced wound management segment would confirm the bull case.

Bear Confirmed If

A decline in market share or revenue growth below 2% would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±32.33%

Historical Avg

±2.4%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±32.3% while SNN has averaged ±2.4% over the last 8 prints — setup is pricing rich.

Detail

30d HV

28.2%

Calls (300)P/C Ratio: 0.10Puts (0)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Smith & Nephew beats expectations, history suggests a potential average one-day move of +2.89%, confirming strong market confidence.

In-Line / Cautious

If results are in line but cautious commentary is provided, the stock may see muted movement as investors reassess growth prospects.

Miss

Should the company miss expectations, history suggests an average one-day move of -1.11%, indicating a likely negative reaction from the market.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on product launches in advanced wound management.
2Any commentary on competitive dynamics in the orthopedic market.
3Insights into emerging market performance and growth strategies.
4Management's outlook on cost management and operational efficiency.
5Details on R&D investments and their expected impact on future growth.

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Company Snapshot

Key Metrics to Watch

Revenue Growth

Investors will be looking for signs of demand in Smith & Nephew's product lines amid ongoing healthcare spending trends.

N/A

Earnings Per Share (EPS)

EPS is a crucial indicator of the company's profitability and will help gauge operational efficiency.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

SNN Q3-2019 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

25%

Avg EPS Surprise

+19.92%

Avg Stock Reaction

+0.05%

Last Quarter Recap

Management Promises & Guidance

Commitment to enhancing product development in advanced wound management.
Focus on expanding market presence in emerging markets.
Continued investment in research and development to drive future growth.

Expectations

Wall Street Expectations

Bull Case

If the company demonstrates strong revenue growth and effective cost management, it could signal a robust recovery and increased market confidence.

Bear Case

On the other hand, if earnings fall short or guidance is weak, it could raise doubts about the company's growth trajectory and lead to a negative market reaction.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected revenue growth in the advanced wound management segment?

This segment is crucial for the company's overall performance, and any significant growth or decline will heavily influence market sentiment.

How does management plan to address competitive pressures in the orthopedic reconstruction market?

With increasing competition, clarity on strategic initiatives will be vital for investor confidence.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for Smith & Nephew's advanced wound management products to capture market share, especially in emerging markets.

Supporting Evidence

Options are pricing a 32.33% move, indicating expectations of volatility that may not materialize.

Historical data shows the stock has only moved more than 5% in one of the last eight quarters.

The company's focus on innovation could lead to better-than-expected performance despite competitive pressures.

Key Risk

If revenue growth in the advanced wound management segment exceeds 5%, it could challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around the company's ability to sustain growth in a competitive landscape.

Bull Confirmed If

A revenue growth rate of over 5% in the advanced wound management segment would confirm the bull case.

Bear Confirmed If

A decline in market share or revenue growth below 2% would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±32.33%

Historical Avg

±2.4%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±32.3% while SNN has averaged ±2.4% over the last 8 prints — setup is pricing rich.

Detail

30d HV

28.2%

Calls (300)P/C Ratio: 0.10Puts (0)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Smith & Nephew beats expectations, history suggests a potential average one-day move of +2.89%, confirming strong market confidence.

In-Line / Cautious

If results are in line but cautious commentary is provided, the stock may see muted movement as investors reassess growth prospects.

Miss

Should the company miss expectations, history suggests an average one-day move of -1.11%, indicating a likely negative reaction from the market.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on product launches in advanced wound management.
2Any commentary on competitive dynamics in the orthopedic market.
3Insights into emerging market performance and growth strategies.
4Management's outlook on cost management and operational efficiency.
5Details on R&D investments and their expected impact on future growth.