Smiths Group to reveal full-year figures

The company will announce its full-year figures on Wednesday 17 September. The consensus is for revenue of £2.99 billion and an operating profit of £469 million. 

Philip Bowman, CEO Smiths
Source: Bloomberg

The stock is trading at £13.59. The share price is broadly unchanged since the company posted a 20% decline in first-half pre-tax profits in March. Although the stock came close to breaching the £12 mark on a couple of occasions, it has since managed to pull back those losses. In May the engineering company issued a profit warning, tougher capital requirements and an extra cost of £4 million, providing long-term contracts hit the bottom line. Smiths Group also cited the strength of sterling as a reason for profit warning. However, the pound has declined in value since then which is beneficial to the company.

Equity analysts are a touch on the bearish side. Out of the 17 recommendations, four are buys, five are holds and eight are sells.

The stock is receiving support at the 200-day moving average of £13.38. If cost-cutting continues the stock could target £14.45. 

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