By Adria Calatayud
Smith & Nephew PLC (SN.LN) said Thursday that pretax profit for 2017 fell 17%, but the company expects revenue growth to accelerate this year.
The U.K. medical-equipment manufacturer made a full-year profit before tax of $879 million compared with $1.06 billion in 2016, it said. This falls short of a consensus estimate of $901 million based on four analysts' forecasts provided by FactSet.
Smith's revenue was up 2.1% at $4.76 billion in 2017 compared with $4.67 billion a year earlier, it said. Analysts polled by FactSet had forecast Smith's revenue at $4.78 billion.
On an underlying basis--excluding the effects of currency translation and disposals--revenue grew 3%, in line with the company's guidance, Smith said.
Revenue for the fourth quarter increased 5% from the year-earlier period to $1.28 billion, the company said.
For 2018, Smith expects revenue to grow between 7% and 8%, and 3% to 4% on an underlying basis, it said.
Profit margin is forecast to improve by a further 30 to 70 basis points and the tax rate is anticipated at between 20% and 21% following recent U.S. tax reforms, the company said.
Smith raised its full-year dividend to 35 cents a share from 30.8 cents a year earlier.