Healuis (ASX: HLS) was down -6.01% at the open after the healthcare company informed the market this morning of more difficult market conditions in the second half of the financial year following strong first half trading.
Trading is broadly in line with the company’s update last month.
However, management noted that due to market volatility and a “range of broker forecasts” unaudited underlying earnings (EBIT) for the year-to-date to May 2022 is now expected to be around $473m.
Clearly what has irked investors this morning is revelations that the company has added less than $100m of earnings in the second half, with one only month to go.
This compares to earnings of $376.1m during the first half.
Both Q3 Pathology and Imaging are slightly ahead (as in the first half) of Medicare data.
Covid testing remained around 15,000 per working day in May.
But the company notes operational challenges and additional costs due to the level of covid infections have led to last-minute cancellations of surgery and imaging procedures.
Market data for the 4 months to 30 April 2022 include:
Core pathology benefits -8.8% on the previous period, compared to -1.4% in 1H 2022
Imaging benefits -8.2% on the previous period, compared to +0.6% in 1H 2022
Mid-March Healius announced an on-market share buy-back of up to $100m over the next 12 months, and this week announced the completion of the sale of Adora Fertility.
Healius has also refinanced its debt facilities and reconfirmed its margin expansion targets from its Sustainable Improvement Program.
Looking ahead, management also advised that it remains focused on growing its core pathology and imaging businesses, where it believes it is well-positioned as an incumbent operator with operating leverage.
Management also aims to grow its emerging diagnostic positions, underpinned by its market-leading digital program.
Healius share price over 12 months.
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