Smith+Nephew cut its full-year guidance on Wednesday after slower than expected growth in its Orthopaedics division, particularly US Hips and Knees. It now expects revenue growth of around 3%, down from around 4%. Third-quarter revenue rose 3.4% to $1.55 billion. Trading profit growth guidance fell to around 4% from around 8%, with profit expected at about $1.25 billion instead of $1.3 billion. Free cash flow guidance dropped to around $750 million from $800 million. The company said talks with Johnson & Johnson about combining Orthopaedics with J&J's DePuy Synthes unit have ended. It will keep exploring "the full range of strategic options" for the business. Its $500 million share buyback remains on track, with $250 million completed.

Smith & Nephew's merger talks with Johnson & Johnson (J&J) over its orthopaedics unit collapsed over who would lead the combined company, the Financial Times reported. The sides had reportedly agreed on the main financial terms and the deal structure. J&J wanted Namal Nawana, who runs its orthopaedics unit and formerly led Smith & Nephew, to lead the business. Smith & Nephew wanted current chief executive officer Deepak Nath to stay. Smith & Nephew's offer valued J&J's hip and knee unit at up to $22 billion, almost double its own market value. J&J shareholders would have owned 50.1% of the combined company. J&J is leaning toward spinning off the unit as DePuy Synthes, targeting mid-2027. Reuters reported the unit sought around $20 billion and drew private equity interest. Both companies declined to comment.

Simply Wall St has named three London-listed stocks it says trade below estimated fair value based on future cash flows: Morgan Sindall Group, Shell, and Smith & Nephew. The screen flags 23 more companies not covered. Morgan Sindall Group, a £1.8b construction and regeneration firm, saw its secured order book rise 39% to £12bn. Its Partnership Housing arm ties it to long-term contracts, though policy changes and planning delays pose risks. Shell has a market value of about £225.1b and revenue of $443.2b. Its LNG portfolio exceeds 60 million tons. Smith & Nephew, valued at £9.1b, relies on repeat implant procedures. New products drove 75% of first-half growth.