Smiths Group Shares Rise Most in More Than 35 Years on Results

Jonas Ekblom
1 min read

In This Article:

(Bloomberg) -- Shares in Smiths Group Plc briefly surged to a record high on Wednesday as the more than 150-year-old British engineering firm reported a strong quarter and increased its revenue guidance, belying what had until now been a tough year for the stock.

Most Read from Bloomberg

Smiths, which first listed on the London Stock Exchange in 1914, rose as much as 21% in what is the steepest share-price gain since Bloomberg records began in 1988. The advance briefly took the stock into positive territory for the year, before gains pared.

Wednesday’s first-quarter earnings were lauded by analysts, with the company increasing full-year revenue guidance and setting a firm goal for margin expansion. Jefferies’ Andy Douglas said quarterly sales growth was “very impressive.” Adding to positives was a 50% expansion of its buyback program to ￡150 million ($191 million).

Smiths shares had two tough months leading up to the first-quarter print, with an initial slide starting at the end of September after the London-based firm reported weak full-year earnings, triggering concerns over the outlook.

RBC Capital Markets analyst Mark Fielding said Wednesday’s update was very helpful, as both the strong results and order momentum work to de-risk full-year expectations.

--With assistance from Paul Jarvis.

Most Read from Bloomberg Businessweek

?2024 Bloomberg L.P.

Recommended Stories